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Determining abnormally lDetermining abnormally low price in procurement: the case of Ukraine

Author

Listed:
  • Anton Shmihel
  • Daryna Pustovoit
  • Kostiantyn Zahorulko
  • Oleksandra Chmel

    (Kyiv School of Economics)

Abstract

Cases of abnormal decreases in auction prices within the Prozorro system draw attention of researchers and reformators. This work is aimed at determination of abnormally low price within the procurement system of Ukraine and development of methodology and recommendation on prevention of negative consequences caused by the abnormally low price. The maximum bidding step (according to the methodology of the World Bank for definition of abnormally low prices) was established for two auction groups: with two and more participants, and also three and more participants based on logit and linear regressions. In addition, authors defined (according to CPV codes) sectors (according to CPV codes) with the highest likelihood of abnormal low prices.

Suggested Citation

  • Anton Shmihel & Daryna Pustovoit & Kostiantyn Zahorulko & Oleksandra Chmel, 2019. "Determining abnormally lDetermining abnormally low price in procurement: the case of Ukraine," Modern Economic Studies, Kyiv School of Economics, vol. 2(1), pages 45-80.
  • Handle: RePEc:kse:modern:v:2:y:2019:i:1:p:45-80
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    File URL: http://repec.kse.org.ua/pdf/mes/v2_n5_Shmihel_Pustovoit_Zahorulko_Chmel_ENG.pdf
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    References listed on IDEAS

    as
    1. Oecd, 2011. "Procurement by Utilities," SIGMA Public Procurement Briefs 16, OECD Publishing.
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    More about this item

    Keywords

    public procurement; Prozorro; abnormally low price;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions

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