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Sourcing for government goods and services: Theory and evidence from Swedish Cities and Municipalities
Södertörn University, School of Social Sciences, Economics.ORCID iD: 0000-0001-5026-9479
Umeå universitet, Umeå University.
2013 (English)In: Charting a Course in Public Procurement Innovation and Knowledge Sharing / [ed] Gian Luigi Albano, Keith F. Snider and Khi V. Thai, Boca Raton, Florida: PrAcademics Press , 2013Chapter in book (Refereed)
Abstract [en]

Departing from a simple normative theory for the choice between lowest price, highest quality (beauty contest) and more complex scoring rules, we empirically investigate the behavior of cities and authorities. We survey a gross sample of 40 procuring entities about perceived key characteristics of products bought in 650 public procurements and collect data on award methods for these procurements. We compare actual scoring rules against the theoretical norms and analyze what product characteristics make deviation from the norm more or less likely. In addition, a control group of 100 authorities was surveyed about similar but hypothetical procurements. We find that more complex scoring rules are used more often when framework agreements are procured and less so when the procuring authority reports that they experience significant uncertainty about the delivered quality. Low weight given to price in the bid award process is associated with low perceived uncertainty concerning delivered quality.

Place, publisher, year, edition, pages
Boca Raton, Florida: PrAcademics Press , 2013.
Keyword [en]
public procurement, scoring rule, beauty contest, survey, award criteria
National Category
Economics
Research subject
Politics, Economy and the Organization of Society
Identifiers
URN: urn:nbn:se:sh:diva-21307ISBN: 0-9668864-7-XOAI: oai:DiVA.org:sh-21307DiVA: diva2:687318
Available from: 2014-01-14 Created: 2014-01-14 Last updated: 2016-09-19Bibliographically approved

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