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Incentives for Repeated Contracts in Public Sector: Empirical Study of Gasoline Procurement in Russia
International Journal of Procurement Management. 2016. Vol. 9. No. 3. P. 272-289.
Contrary to previous studies of relational contracting this paper analyzes the impact of repeated procurements on the price of a simple homogeneous product. Using a large dataset on procurements of AI-92 gasoline in Russia in 2011, we show that price difference between repeated and one-time contracts can be explained by the type of procurement procedures. Less transparent procedures (single-sourcing and requests for quotations) are more suitable for corrupt collusion. This might explain relative price increase in this case. On the contrary, the prices of repeated contracts were lower compared to one-time procurement in the case of more transparent e-auctions.
Research target:
Economics and Management
Language:
English
Publication based on the results of:
Tkachenko A., Yakovlev A. A., Kuznetsova A., Economic Systems 2017 Vol. 41 No. 1 P. 52-67
We show how a price analysis of stable relations between customer and supplier in the public procurement of homogeneous goods can help differentiate opportunistic from honest behaviour among economic agents. We consider two types of stable relations: repeated procurements and connections based on the state ownership of suppliers. On the basis of a large dataset ...
Added: January 27, 2017
Detkova P., Podkolzina E., Tkachenko A., International Journal of Public Administration 2018 P. 414-434
This paper estimates the impact of corruption on the incentives of procurers to maintain honest competition in tenders. Customers, who procure for themselves, and Agencies, who procure for the customers in their region are considered. Basing on a large dataset of open auctions conducted by Russian regional-level authorities in 2011, the analysis shows that in ...
Added: January 18, 2018
Yakovlev A. A., Tkachenko A., Rodionova Y., 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
Yakovlev A. A., Выгловский О. В., Demidova O. et al., / Высшая школа экономики. Series PA "Public Administration". 2015. No. WP BRP 24/PA/2015.
This paper analyzes the phenomenon of repeated procurements made by public sector customers from the same supplier. The previous surveys of “relational contracts” gave different explanations for the possible implications of such repeated procurements, but those surveys dealt mostly with goods and services, with quality difficult to verify at the point of delivery. This work ...
Added: January 26, 2015
Yakovlev A. A., Balaeva O., Tkachenko A. 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
Avdasheva S. B., Yakovlev A. A., Головщинский К. И. 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
Balaeva O., Yakovlev A. A., Rodionova Y. et al., Public Money & Management 2022 Vol. 42 No. 3 P. 181-190
This paper presents a public procurement transaction cost evaluation using a large-scale survey of procurers and suppliers. The study was conducted in Russia in 2017. The results of the survey confirmed that the lower the contract value, the more expensive the procurement procedure. An empirical analysis of factors impacting public procurement cost evaluation also revealed ...
Added: October 21, 2020
fgh g., Libman A., Post-Soviet Affairs 2015 Vol. 31 No. 4 P. 304-338
Corruption is widespread throughout the former Communist states, and it is particularly severe and entrenched in Russia. Despite the fact that Russia's contemporary corruption has recently become a subject of analysis, there is, however, no study that has addressed the role of the Communist legacy in the development of various aspects of corruption. This paper ...
Added: September 3, 2015
Дарден К., Прогнозис 2009 № 2 С. 109-134
Added: June 2, 2016
Maria Ostrovnaya, Elena Podkolzina, / 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
Соловяненко Н. И., Право. Журнал Высшей школы экономики 2009 № 3 С. 34-44
Article contains an analysis of problems of access to information about state and municipal orders and purchases, The sphere of state orders is financed from state budget and needs in legal regulation which may maintain principles of competition, transparency and controls. Therefore legal norms regulating access to such information play an important role. They permit ...
Added: April 14, 2013
Rodionova Y., / НИУ ВШЭ. Series WP BRP Series "Public and Social Policy". 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
Silvestrovich K., Tkachenko A., Yakovlev A. A., / SSRN. Series "Working Papers". 2022.
In private and public sectors, employees and bureaucrats often found themselves bounded by the strict regulation. Being unable to achieve the prescribed KPI under the current regulation, they violate the formal rules. While such deviations are considered a negative phenomenon in most studies, this paper investigates the concept of pro-social rule breaking, focusing on public ...
Added: January 4, 2023
Yakovlev A. A., Balaeva O., Rodionova Y. 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
Ostrovnaya M., Elena Podkolzina, 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
Detkova P., Tkachenko A., Yakovlev A. A., Journal of Economic Behavior and Organization 2021 Vol. 189 P. 217-233
A high level of corruption usually constrains economic development in emerging countries. However, anti-corruption campaigns often fail because the relevant policies need to be implemented by existing corrupt governments. This article studies the extent of bureaucrats’ heterogeneity in attitude to the problem of corruption. Due to the sensitivity of direct questions on corruption, we conduct ...
Added: July 16, 2021
Styrin E. M., Rodionova Y., 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
Fattakhov T., Мониторинг общественного мнения: Экономические и социальные перемены 2015 № 128 С. 66-95
Abstract. Over more than ten years, Russia has been at the top of the list of the OECD countries by traffic-related death rate per 1000 residents. The death rate in Russia is five- to six-fold greater than in most of the developed countries, given that the number of cars per 1000 residents is much lower. ...
Added: September 18, 2015
Shadrina E. V., Dmitry V. Kashin, Dmitri V. Vinogradov, / 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
Vinogradov D., Shadrina E. V., Doroshenko M. E., / Высшая школа экономики. Series PA "Public Administration". 2015. No. WP BRP 27/PA/2015.
Knowledge intensive business services (KIBS) are a rapidly developing sector of modern economies. Numerous studies suggest that KIBS facilitate knowledge exchange between providers and consumers, and improve the innovativeness of the latter. However, because KIBS are strongly reliant on service co-production by the customer and provider working in partnership, intensive cooperation between the two parties ...
Added: June 27, 2018
Barsukova S., Denisova-Schmidt E., Ledeneva A., Osteuropa 2018 Vol. 68 No. 8-9 P. 25-40
The fight against corruption enjoys worldwide attention. But how do you measure corruption? Many social scientists rely on quantitative methods. But these have a weakness. They are blind to the particular social and local context in which people use informal practices. Also, not every informal action is corruption. In order to be able to precisely ...
Added: December 26, 2018
Rodionova Y., 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
Corazzini L., Galavotti S., Valbonesi P., 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
Yakovlev A. A., Demidova O., Экономический журнал Высшей школы экономики 2010 Т. 14 № 2 С. 202-226
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 ...
Added: October 13, 2012