Collusion detection in procurement auctions
The paper discusses anti-corruption effects of public procurement reforms in Russia.
The reform of budget sector’ entities enables us to compare the impact of different types of public procurement regulations in budget and autonomous organizations in Russia. Such analysis is important in the view of critical discussion on the effects of current procurement regulation (94-FL) as well as taking into account introducing of the Federal Contract System in 2014.
Using the differences in differences methodology we consider public procurements of two national universities in 2011-2012. All procurements of the first university were regulated by the 94-FL requirements. Procurements of the second university were regulated by the 94-FL until June 2011. Later this university introduced its own Procurements Provision. Comparative analysis of procurements of these organizations enables us to estimate the impact of the different types of regulations on the efficiency of public procurement measured by the level of competition and price decline in public tenders as well as timely execution of procurement contracts.
We examine an equilibrium concept for 2-person non-cooperative games with boundedly rational agents which we call Nash-2 equilibrium. It is weaker than Nash equilibrium and equilibrium in secure strategies: a player takes into account not only current strategies but also all profitable next-stage responses of the partners to her deviation from the current profile that reduces her relevant choice set. We provide a condition for Nash-2 existence in finite games and complete characterization of Nash-2 equilibrium in strictly competitive games. Nash-2 equilibria in Hotelling price-setting game are found and interpreted in terms of tacit collusion.
Corruption in government procurements remains to be one of grave problems in transition economies. A reaction to this problem in Russia came in 2005-2006 in form of a radical reform of government procurements. This paper analyses the main parameters of firms participating in government procurements before and after changes in regulation. Our analysis is based on the data of a survey of 957 manufacturing enterprises conducted in 2009. The questionnaire included queries about participation of firms in supplies to government orders, the extent of «kickback» in public procurement system etc. A similar survey with the same sampling was conducted in 2005, and this enabled us to construct a panel of 499 firms and to have a unique opportunity for a comparison of the situation before and after the radical change in the legislation. Our regression analysis confirmed the hypotheses that in 2005, firms with government stakes, old firms (established before 1992) and larger firms had advantages in access to government orders. Our analysis of the 2009 data showed a substantial growth in the share of firms participating in government procurements. As before, large firms retain their advantages in access to government orders. However for the old firms, the corresponding coefficient became insignificant. On the other hand, firms that are located in more developed Russian regions have obtained advantages in access to government orders. Our analysis of the 2009 data also revealed that factors of active modernization of the enterprises (presence of large-scale investment projects in 2005-2008, exports, ISO certification) had no influence on access of the firms to government orders. At the same time, the fact of having fulfilled government orders in 2004 has positive influence on participation of a firm in government procurements in 2008. Estimated scales of «kickback» in 2009 were practically the same. The results of our analysis enable us to conclude that principal goals of the radical reform in 2005 were never achieved. The conclusion of our paper examines of the reason for this situation and formulates policy implications.
On the example of advocacy support of National Population Census in 2010, some specifics features of public information projects under the existing regime of public procurement are considered.
The paper discusses anti-corruption effects of public procurement reforms in Russia
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.