Rieko Ishii () (Institute of Social and Economic Research, Osaka University)
Abstract
We present an econometric approach to the problem of detecting bid rigging in procurement auctions using bidding data for paving works in Ibaraki City, Osaka, Japan. We first show that sporadic price wars are caused by the participation of potential goutsiders.h Assuming that the ring is all-inclusive in the absence of these outsiders, we estimate the rule by which the ring selects the winner. It is found that the ring tends to select a bidder whose time elapsed from the last winning is long and whose winning amount in the past is small relative to other bidders.
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Publisher Info
Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number
07-16.
Find related papers by JEL classification: D44 - Microeconomics - - Market Structure and Pricing - - - Auctions H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
McAfee, R Preston & McMillan, John, 1992.
"Bidding Rings,"
American Economic Review,
American Economic Association, vol. 82(3), pages 579-99, June.
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Other versions:
McAfee, R. Preston & McMillan, John., 1990.
"Bidding Rings,"
Working Papers
726, California Institute of Technology, Division of the Humanities and Social Sciences.
[Downloadable!]
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