Detecting Collusion through Exchange of Favors in Repeated Procurement Auctions
It is known that bid rigging in public-work auctions in Japan often takes the form of exchanging favors. In such a scheme, the winner is designated based on the amount of favor he has given to other members of the ring. By explicitly modeling gfavor h as an explanatory variable, this paper analyzes data from the public-works auctions for consulting works in Naha, Japan, to confirm that such a collusion scheme is in operation.
|Date of creation:||May 2007|
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726, California Institute of Technology, Division of the Humanities and Social Sciences.
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1698r2, Stanford University, Graduate School of Business.
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