IDEAS home Printed from https://ideas.repec.org/p/tkk/dpaper/dp176.html

Entry barriers in public procurement: Evidence from conjoint survey experiment

Author

Listed:
  • Ari Hyytinen

    (Hanken School of Economics and Helsinki GSE)

  • Jan Jääskeläinen

    (Finnish Consumer and Competition Authority)

  • Antti Sieppi

    (Finnish Consumer and Competition Authority)

  • Vesa-Heikki Soini

    (Hanken School of Economics and University of Turku)

  • Janne Tukiainen

    (Department of Economics, University of Turku)

Abstract

Limited competition in public procurement remains a persistent concern, yet the reasons for low participation are not well understood. We conduct a conjoint survey experiment that targets both potential and actual bidders in Finland. We present real firms with hypothetical tender scenarios, randomly varying key attributes values, asking which tender they would enter. The time required to prepare a bid is the most significant entry barrier. Moreover, tenders evaluated solely on the lowest price, those involving cross-border participation, and higher expected competition reduce entry. Uncertainty over the number of competitors deters entry as much as for certain facing high competition.

Suggested Citation

  • Ari Hyytinen & Jan Jääskeläinen & Antti Sieppi & Vesa-Heikki Soini & Janne Tukiainen, 2026. "Entry barriers in public procurement: Evidence from conjoint survey experiment," Discussion Papers 176, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp176
    as

    Download full text from publisher

    File URL: http://ace-economics.fi/kuvat/dp176.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tkk:dpaper:dp176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Susmita Baulia The email address of this maintainer does not seem to be valid anymore. Please ask Susmita Baulia to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/tukkkfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.