Logo
Munich Personal RePEc Archive

Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico

Rosa, Benjamin (2018): Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico.

This is the latest version of this item.

[thumbnail of MPRA_paper_86206.pdf]
Preview
PDF
MPRA_paper_86206.pdf

Download (832kB) | Preview

Abstract

In public procurement auctions, governments routinely offer preferences to qualified firms in the form of bid discounts. Previous studies on bid discounting do not account for affiliation – a form of cost dependence between bidders that is likely to occur in a public procurement environment. Utilizing data from the New Mexico Department of Transportation's Resident Preference Program, I develop and estimate an empirical model of firm bidding and entry that allows for affiliation in firms' project costs. I find evidence of affiliation and show how it changes preference auction outcomes.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.