Setting reserve prices in repeated procurement auctions
Atmaca S., Camboni R. M., Podkolzina E., Schoors K., Valbonesi P.
We use a large dataset of Russian public procurement auctions for standard gasoline over the period 2011-2013, to investigate how buyers set the reserve price - i.e. the buyer’s announced maximum willingness to pay for the good awarded. We provide empirical evidence that repeated past contracts between a buyer and a supplier affect the reserve price set by this buyer in future auctions where the same supplier takes part and wins. Specifically, we find that in these auctions the reserve price, the level of competition, and the winning unit price are lower than in the average auction in the dataset. We conjecture that, in setting the reserve price for a new auction, public buyers exploit information gained about the winners of previous auctions. This intuition is supported by empirically studying the reserve price in a dynamic framework, which allows buyers to take into account information from previous procurement transactions with given suppliers. Finally, we show that our empirical results are in line with a simple theoretical setting in which the buyer collects information about one supplier’s costs and exploits this in setting the reserve price in future auctions.
Research target: Economics and Management
Priority areas: economics
, International Journal of Conflict Management 2021 Vol. 32 No. 5 P. 747-768
Purpose: This paper aims to analyze conflict resolution practice in public procurement. The specific feature of this sphere is the presence of the state and the resulting differences in assessing the chances of protecting one’s interests in court, as well as the effectiveness of judicial conflict resolution mechanisms. Design/methodology/approach: This paper is based on the findings ...
Added: August 11, 2021
Единая информационная система в сфере закупок как государственная цифровая платформа: современное состояние и перспективы
, , Вопросы государственного и муниципального управления 2020 № 3 С. 49-70
Technological progress and economic incentives contribute to the rapid development and digitalization of all areas of government activity, including public procurement. The key role in digital transformation belongs to electronic platforms. They provide technological feasibility of electronic procurement process and its’ accessibility for all the participants. This article analyzed previous studies on the use of ...
Added: September 30, 2020
Conflict Resolution in Russian Public Procurement: Understanding Supplier Strategies in a State Dominated System
, Conflict Resolution in Russian Public Procurement: Understanding Supplier Strategies in a State Dominated System / . 2020. No. 28.
This paper, based on a large-scale online survey of suppliers conducted by the HSE IIMS in 2017, analyzed various conflict resolution strategies in public procurement. The specific feature of this sphere is the presence of the state as the dominant party in the contractual relationship, and the resulting differences in assessing the chances of protecting ...
Added: July 27, 2020
, , et al., ЭКО 2018 № 9 С. 17-38
This article examines the problems of the Russian public procurement system based on the analysis of assessments from a mass survey of both customers and suppliers. It is shown that despite a significant change in legislation, most of the problems that were noted by researchers and practitioners 7–8 years ago remain including price dumping, regulatory ...
Added: August 29, 2018
, , et al., Evaluation of Public Procurement Costs: Macrolevel Assessment Based on Microdata / НИУ ВШЭ. Series WP BRP Series "Public and Social Policy". 2018. No. 20.
Public procurement cost evaluation is important both for procurement optimization at the company level and for evaluating the public procurement regulatory system. This paper presents a survey-based methodological approach to public procurement cost evaluation at the macro level. Our approach is based on a methodology for assessing the efficiency of public procurement developed by PwC ...
Added: December 15, 2018
, , et al., Госзаказ: управление, размещение, обеспечение 2020 № 60 С. 66-75
В марте-апреле 2020 года Институт анализа предприятий и рынков ВШЭ в рамках долгосрочного проекта фундаментальных исследований «Поведение экономических агентов на рынках государственных закупок и развитие предприятий в переходных экономиках» провел массовый онлайн-опрос госзаказчиков и поставщиков. Целью опроса был анализ существующих проблем в регулировании и практике применения Закона о контрактной системе (44-ФЗ) на основе оценок самих ...
Added: July 27, 2020
Причины заключения контрактов с заранее определенными поставщиками: результаты эмпирического исследования
, , , Вопросы экономики 2018 № 10 С. 90-105
The experience of the last decade has demonstrated that the state policy on the extension of competitive procedures in public procurement has been challenged by the attempts of customers and suppliers to restrict competition. The mass survey of customers and suppliers carried out by the Institute for Industrial and Market Studies in 2017 showed that ...
Added: October 10, 2018
, , , Games and Economic Behavior 2019 Vol. 117 P. 289-315
We experimentally study sequential procurement auctions where bidders' capacity constraints are private information. Our experiment involves two first-price auctions with a belief elicitation stage at the end of the first. Our results show that (i) observed behavior in the second auction is overall consistent with sequential rationality; (ii) first auction bids are decreasing in the ...
Added: October 1, 2019
, , et al., СоциоДиггер 2021 Т. 1 № 6 С. 19-29
Последнее десятилетие ознаменовалось внесением кардинальных изменений в российскую систему государственных закупок. Основными направлениями ее реформирования стали преодоление коррупционных проявлений в ходе закупочных процедур, обеспечение их максимальной прозрачности и конкуренции среди участников торгов. И во многом эти реформы были реализованы. По оценкам исследования Всемирного банка, охватившего 180 стран, по показателю «размещение информации о закупках» Россия получила ...
Added: February 1, 2021
, , et al., Public Procurement Efficiency As Perceived By Market Participants: The Case Of Russia / НИУ ВШЭ. Series WP BRP Series "Public and Social Policy". 2021. No. 29.
Added: July 15, 2021
, , et al., Efficient design of set-aside auctions for small businesses: an empirical analysis / . 2019. No. 240.
Government support to small business enterprises (SBEs) through set- aside (SA) public procurement auctions is a common practice. The effect of the SA mechanism is, however, ambiguous. On the one hand, SA auc- tions can attract more SBEs to compete; on the other hand, SA auctions restrict the entry of—possibly—more cost-efficient large firms. We inves- ...
Added: November 7, 2019
, , et al., ЭКО 2020 № 11 С. 83-103
This paper examines key problems and assesses effectiveness of the Russian public procurement system. The results of mass survey of customers and suppliers in 2020 testify to conservation of problems accumulated in the public procurement system. In order to ensure the final outcome of the procurement, honest participants have to move into the ‘gray zone’ ...
Added: October 25, 2020
Регламентированные закупки в России: как повысить стимулирующую роль расходов бюджетов и регулируемых компаний
, , et al., Госзаказ: управление, размещение, обеспечение 2020 № 60 С. 28-61
Перед экономической политикой России, как и всех других стран в 2020 году, стоит задача поддержки экономики. Среди инструментов решения этой задачи значительное место занимают бюджетные расходы и расходы контролируемых государством компаний. Эти расходы достигают величины, равной трети ВВП России (что вдвое и более выше аналогичного показателя для стран ОЭСР). Из контролируемых государством расходов (по суммам ...
Added: August 2, 2020
, , , Set-Asides: The Not-So-Clear Side of Public Procurement / SSRN. Series "Working Papers". 2020.
Set aside procedures in public procurement are those reserved for a sub-class of bidders, such as small and medium enterprises (SMEs) only, as a tool of the preferential treatment of SMEs by many governments. Prior studies and our results indicate these setasides reduce costs of government contracting. If they are cheaper, why should regulations enforce them, and why do ...
Added: February 4, 2020
, Журнал институциональных исследований 2020 Т. 12 № 1 С. 160-176
This paper, based on a large-scale online survey of suppliers conducted by the HSE IIMS in 2017, analyzed various conflict resolution strategies in public procurement. The specific feature of this sphere is the presence of the state as the dominant party in the contractual relationship and the resulting differences in assessing the chances of protecting ...
Added: March 30, 2020
, , et al., International Journal of Public Administration 2022 Vol. 45 No. 16 P. 1156-1167
This paper studies the indicators of public procurement efficiency as perceived by procurers and suppliers and what barriers must be overcome to consider procurement efficient. The authors used an online survey of Russian procurers and suppliers conducted in 2020 as the main data source. Methods based on comparison of descriptive statistics and distributions of answers ...
Added: August 23, 2021
, , Вопросы государственного и муниципального управления 2017 № 4 С. 103-138
This paper analyses the impact of governor’s tenure and his/her local ties on restriction of competition in the allocation of public procurement contracts. Basing on existing literature, we proposed that (1) tenure’s impact on competition in public procurement is non-linear and (2) it depends on governor’s pre-existing work experience in the region before he/she was ...
Added: December 5, 2017
, , Favoritism in public procurement auctions: model of endogenous entry / Department of Economics - University of Perugia (IT). Series ISSN 2385-2275 "Working papers of the Department of Economics - University of Perugia (IT)". 2015. No. 15.
Governments of different countries try to lower the entry cost in public procurement in order to decrease public spending. The purpose of this paper is to examine how the entry cost influences favoritism and procurement prices in the corrupt environment. We adapt the model of selective entry and find that lower entry cost always reduces ...
Added: November 29, 2015
Организационные формы и стимулы в государственных закупках: естественный эксперимент для одной российской государственной организации
, , , Экономический журнал Высшей школы экономики 2016 Т. 20 № 2 С. 285-310
This paper analysis the impact of centralized monitoring enlargement in a large public organization on incentives for efficient activity of organization’s departments, which have different levels of financial autonomy. We analyze the data of the large public organization during 2008-2013. The efficiency of departments’ activity was measured by competiveness of their procurements and delays in ...
Added: October 14, 2015
, Вестник АТЭС 2016 № 4 С. 4-8
Nowadays WTO Government Procurement Agreement (GPA) is the key instrument in regulation and liberalization of government procurement sector on the plurilateral level. The revision of GPA text and coverage negotiated in 2012 became the most prominent achievement for the parties to the agreement during the recent decades as well as the important result for the ...
Added: October 3, 2016
, , Journal of Competition Law & Economics 2015 Vol. 11 No. 2 P. 331-352
Why do people violate the law? The Hobbesian outlook would be that people violate the law in the absence of appropriate punishment. John Stuart Mill would have attributed the violation to the lack of incentives to behave legally. In this paper, we combine these two factors to examine the effect of antitrust regulation on price ...
Added: October 21, 2014
Examination of the Effects of Personal and Purchasing Unit Characteristics on Types of Problems Experienced and Types of Contracts That Are Problematic
, , , Journal of Management Research (США) 2014 Vol. 6 No. 4 P. 21-49
This paper provides a contribution to the knowledge of contract administration by examining the role of personal and organization characteristics in project success. The research described in this paper examines the effects that personal and organizational characteristics of procurement professionals have on project success, specifically on the frequency and severity of problems experienced for different ...
Added: October 20, 2014
, Госзаказ: управление, размещение, обеспечение 2020 № 61 С. 42-47
Спорные ситуации в государственных закупках могут возникать как в силу добросовестных, так и недобросовестных действий поставщиков, ведущих к срыву исполнения контрактов. Но как поставщики решают такие ситуации, и зависит ли способ урегулирования конфликта от типа их поведения? До этого в литературе было показано, что российские предприятия не отказываются от использования судебных процедур, но предпочитают скорее ...
Added: November 2, 2020
, , СПб. : Издательство СПбГЭУ, 2014
Methodical instructions are made according to the program of a course for discipline «State and business inter-action», approved on chair ET&ep of SPbSEU. In them are included: the characteristic of the purposes and problems of studying of a course, distribution of class periods, methodical recommendations about discipline studying «State and business interaction», plans of seminar ...
Added: June 21, 2014