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Snow removal auctions in Montreal: costs, informational rents, and procurement management

Author

Listed:
  • Véronique Flambard

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique, UCL FGES - Université Catholique de Lille - Faculté de gestion, économie et sciences - ICL - Institut Catholique de Lille - UCL - Université catholique de Lille, ICL - Institut Catholique de Lille - UCL - Université catholique de Lille)

  • Pierre Lasserre

    (UQAM - Université du Québec à Montréal = University of Québec in Montréal)

  • Pierre Mohnen

Abstract

Using semi‐parametric and non‐parametric estimation techniques, we infer cost distributions and informational rents from 457 bids for snow removal contracts offered for tender by the City of Montreal between 1990 and 1998. Bids and costs have decreased over the sample period, while rents remained relatively constant. The City deserves credit for these results, as it has succeeded in exploiting economies of scale and triggering innovations while maintaining competition. Further, it has been successful in adjusting its reserve prices to keep up with the decreasing cost of snow removal.

Suggested Citation

  • Véronique Flambard & Pierre Lasserre & Pierre Mohnen, 2007. "Snow removal auctions in Montreal: costs, informational rents, and procurement management," Post-Print hal-04507099, HAL.
    • Handle: RePEc:hal:journl:hal-04507099
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    Cited by:

    1. Atsushi Iimi, 2016. "Multidimensional Auctions for Public Energy Efficiency Projects: Evidence from Japanese Esco Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(3), pages 491-514, November.
    2. Sundström, David, 2016. "The Competition Effect in a Public Procurement Model: An error-in-variables approach," Umeå Economic Studies 920, Umeå University, Department of Economics, revised 17 Jun 2016.
    3. Antonio Estache & Atsushi Iimi, 2012. "Quality or Price? Evidence from ODA-Financed Public Procurement," Public Finance Review, , vol. 40(4), pages 435-469, July.

    More about this item

    Keywords

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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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