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Testing for collusion in bus contracting in London

Author

Listed:
  • Waterson, Michael

    (University of Warwick)

  • Xie, Jian

    (University of Warwick)

Abstract

We investigate the London bus market, a large market with regular procurement of bus services, for possible collusion using a wide variety of techniques, making use of the data at our disposal. There is little evidence of collusion in bidding for contracts apparent from our data, despite some features of the market that might lead to collusive behaviour.

Suggested Citation

  • Waterson, Michael & Xie, Jian, 2019. "Testing for collusion in bus contracting in London," The Warwick Economics Research Paper Series (TWERPS) 1196, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1196
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2019/twerp_1196_waterson.pdf
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    References listed on IDEAS

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    5. Robert H. Porter & J. Douglas Zona, 1999. "Ohio School Milk Markets: An Analysis of Bidding," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 263-288, Summer.
    6. Sylvain Chassang & Juan Ortner, 2019. "Collusion in Auctions with Constrained Bids: Theory and Evidence from Public Procurement," Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 2269-2300.
    7. Marhsall, Robert C. & Marx, Leslie M., 2014. "The Economics of Collusion: Cartels and Bidding Rings," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262525941, April.
    8. Kei Kawai & Jun Nakabayashi, 2022. "Detecting Large-Scale Collusion in Procurement Auctions," Journal of Political Economy, University of Chicago Press, vol. 130(5), pages 1364-1411.
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    More about this item

    Keywords

    Cartel behaviour ; Procurement ; Detecting Cartels ; Bus market;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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