A Study of Bid-rigging in Procurement Auctions: Evidence from Indonesia, Georgia, Mongolia, Malta, and State of California / Kei Kawai, Jun Nakabayashi, Daichi Shimamoto.

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Kawai, Kei

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TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w30271.Publication details: Cambridge, Mass. National Bureau of Economic Research 2022.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: We apply a Regression Discontinuity based approach to screen for collusion developed in Kawai et al. (2022) to public procurement data from five countries. We find that bidders who win by a very small margin have significantly lower backlog than those who lose by a very small margin in the sample of procurement auctions from Indonesia, suggesting that bidders collude by bid rotation. Our results suggest that the proportion of noncompetitive auctions is at least about 5% for all E-procurement auctions and about 3% for all auctions in Indonesia. We cannot reject the null of competition in other countries.

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Working Paper	Biblioteca Digital	Colección NBER	nber w30271 (Browse shelf(Opens below))	Not For Loan

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July 2022.

We apply a Regression Discontinuity based approach to screen for collusion developed in Kawai et al. (2022) to public procurement data from five countries. We find that bidders who win by a very small margin have significantly lower backlog than those who lose by a very small margin in the sample of procurement auctions from Indonesia, suggesting that bidders collude by bid rotation. Our results suggest that the proportion of noncompetitive auctions is at least about 5% for all E-procurement auctions and about 3% for all auctions in Indonesia. We cannot reject the null of competition in other countries.