What impact does antitrust intervention have on competition? The case of public drug procurement in Russia
In this paper we study antitrust intervention in long-term relationships between public procurer and his preferred supplier in one of the Russian regions. We presume that antitrust control of auctions held by affiliated procurer increases the risks of implementing long-term relationships with his preferred supplier. However we found out that after the intervention of antitrust agency the number of bidders in the auctions increased, but relative contract prices remained the same. We argue that procurer and preferred bidder invited firm with passive bidding strategy to decrease the risks of antitrust punishment. Thereby, antitrust intervention led to fake competition, but not to honest non-corrupt behavior in public auctions
|Date of creation:||2013|
|Publication status:||Published in WP BRP Series: Economics / EC, July 2013, pages 1-26|
|Contact details of provider:|| Postal: Myasnitskaya 20, Moscow 101000|
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- Frédéric Boehm & Juanita Olaya, 2006. "Corruption In Public Contracting Auctions: The Role Of Transparency In Bidding Processes," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(4), pages 431-452, December.
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"The Effects of Business-to-Business E-Commerce on Transaction Costs,"
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Wiley Blackwell, vol. 49(4), pages 463-485, December.
- Luis Garicano & Steven N. Kaplan, 2001. "The Effects of Business-to-Business E-Commerce on Transaction Costs," NBER Chapters,in: E-commerce, pages 463-485 National Bureau of Economic Research, Inc.
- Luis Garicano & Steven N. Kaplan, 2000. "The Effects of Business-to-Business E-Commerce on Transaction Costs," NBER Working Papers 8017, National Bureau of Economic Research, Inc.
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