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Interactions Across Firms and Bid Rigging
Södertörn University, School of Social Sciences, Economics.ORCID iD: 0000-0001-5026-9479
Umeå University.
Umeå University.
The Swedish Post and Telecom AuthorityStockholm.
2019 (English)In: Review of Industrial Organization, ISSN 0889-938X, E-ISSN 1573-7160Article in journal (Refereed) Epub ahead of print
Abstract [en]

We evaluate whether an econometric technique that is used in the spatial econometrics and network effects literatures can be adopted as a test for collusive bidding in public procurement auctions. The proposed method is applied to the Swedish asphalt cartel that was discovered in 2001. Our dataset covers the period 1995–2009, which makes it possible to test for conditional independence between complementary cartel bids before and after 2001. Our estimates show a significant positive correlation between complementary cartel bids during the cartel period, whereas a non-significant correlation is shown during the later period. The variance of the parameter estimate of interest also differs between the periods, which suggests a structural change in bidding behavior among cartel members between the two periods.

Place, publisher, year, edition, pages
2019.
Keywords [en]
Antitrust, Auction, Cartel and collusion, Complementary bidding, Networks, Public procurement, Spatial econometrics
National Category
Economics
Identifiers
URN: urn:nbn:se:sh:diva-37323DOI: 10.1007/s11151-018-09676-0Scopus ID: 2-s2.0-85059699162OAI: oai:DiVA.org:sh-37323DiVA, id: diva2:1280168
Available from: 2019-01-18 Created: 2019-01-18 Last updated: 2019-01-18Bibliographically approved

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Bergman, Mats A.Stake, Johan Y.

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • harvard-anglia-ruskin-university
  • apa-old-doi-prefix.csl
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf