Rosa, Benjamin (2016): Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico.
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Abstract
In public procurement auctions, governments occasionally offer preferences to qualified firms in the form of bid discounts. Previous studies on bid discounts do not account for affiliation -- a particular form of cost dependence that is likely to occur in a public procurement setting. Utilizing data from the New Mexico Department of Transportation's Resident Preference Program, this paper addresses that issue via an empirical model of firm bidding and entry behavior that allows for affiliation and bid discounting. I find evidence that firms have affiliated project-completion costs and show how this type of affiliation changes preference auction outcomes.
Item Type: | MPRA Paper |
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Original Title: | Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico |
Language: | English |
Keywords: | Affiliation, procurement auctions, bid preferences |
Subjects: | D - Microeconomics > D4 - Market Structure, Pricing, and Design > D44 - Auctions H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government H - Public Economics > H5 - National Government Expenditures and Related Policies > H57 - Procurement H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H76 - State and Local Government: Other Expenditure Categories R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R42 - Government and Private Investment Analysis ; Road Maintenance ; Transportation Planning |
Item ID: | 72328 |
Depositing User: | Benjamin Rosa |
Date Deposited: | 02 Jul 2016 04:52 |
Last Modified: | 07 Oct 2019 06:38 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/72328 |
Available Versions of this Item
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Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico. (deposited 11 Jan 2016 16:25)
- Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico. (deposited 02 Jul 2016 04:52) [Currently Displayed]