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Does Publicity Affect Competition? Evidence from Discontinuities in Public Procurement Auctions Author info | Abstract | Publisher info | Download info | Related research | Statistics Decio Coviello () (EUI, CSEF and University of Salerno )
Mario Mariniello () (European University Institute )
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Calls for tenders are the natural devices to inform bidders, thus to enlarge the pool of potential participants. We exploit discontinuities generated by the Italian Law on tender’s publicity to identify the effect of enlarging the pool of potential participants on competition in public procurement auctions. We show that most of the effects of publicity are at regional and European level. Increasing tenders’ publicity from local to regional determines an increase in the number of bidders by 50% and an extra reduction of 5% in the price paid by the contracting authority; increasing publicity from national to European has no effect on the number of bidders but it determines an extra reduction of 10% in the price paid by the contracting authority. No effect is observed when publicity is increased from regional to national. Finally, we relate measures of competition to ex-post duration of the works finding a negative correlation between duration and the number of bidders or the winning rebate.
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Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Salerno, Italy in its series CSEF Working Papers with number
189.
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Date of creation: 15 Jan 2008Date of revision:
Handle: RePEc:sef:csefwp:189Contact details of provider: Postal: 84084 Fisciano (SA) Phone: 089 - 96 3167 Fax: 089 - 96 3169 Email: Web page: http://www.csef.it/ More information through EDIRC
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Keywords: Public Procurement Auctions Publicity Regression Discontinuity Duration Analysis Other versions of this item:
Find related papers by JEL classification: D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations D44 - Microeconomics - - Market Structure and Pricing - - - Auctions C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
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