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Abnormally low bids in PPPs: Analysis of evidence and a proposed statistical test

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  • Hinojosa, Sergio
  • Muñoz, Roberto
  • Oviedo, Giancarlos

Abstract

This study examines the presence of abnormally low bids in public-private partnership (PPP) project tenders across Latin America. To this end, a representative database of PPP processes in Latin America was developed. Surprisingly, the findings indicate a notable absence of abnormally low bids. This result stands in stark contrast to recent studies. The analysis of 122 PPP projects spanning diverse countries and sectors provides a foundation for constructing a statistical test to identify abnormally low bids.

Suggested Citation

  • Hinojosa, Sergio & Muñoz, Roberto & Oviedo, Giancarlos, 2025. "Abnormally low bids in PPPs: Analysis of evidence and a proposed statistical test," Utilities Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:juipol:v:96:y:2025:i:c:s0957178725001365
    DOI: 10.1016/j.jup.2025.102021
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    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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