Abstract

http://ssrn.com/abstract=2221809
 
 

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Collusion Detection in Procurement Auctions


Ilya Morozov


National Research University Higher School of Economics

Elena A. Podkolzina


National Research University Higher School of Economics

February 21, 2013

Higher School of Economics Research Paper No. WP BPR 25/EC/2013

Abstract:     
This paper proposes a method of bid-rigging detection, which allows us to reveal cartels in procurement auctions without any prior knowledge of the market structure. We apply it to data on highway construction procurements in one of the Russian regions and show that five suppliers demonstrated passive bidding behavior, which is consistent with the so called ‘rotating bidding’ scheme of collusion. The suggested methodology can be potentially used by both researchers and anti-trust agencies for cartel disclosure in various markets.

Number of Pages in PDF File: 36

Keywords: bid-rigging, tacit collusion, public procurement, cartel, open auction

JEL Classification: H57, L41, L92

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Date posted: February 22, 2013 ; Last revised: March 21, 2014

Suggested Citation

Morozov, Ilya and Podkolzina, Elena A., Collusion Detection in Procurement Auctions (February 21, 2013). Higher School of Economics Research Paper No. WP BPR 25/EC/2013. Available at SSRN: http://ssrn.com/abstract=2221809 or http://dx.doi.org/10.2139/ssrn.2221809

Contact Information

Ilya Morozov
National Research University Higher School of Economics ( email )
Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Elena A. Podkolzina (Contact Author)
National Research University Higher School of Economics ( email )
Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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