29 Pages Posted: 19 Jun 2008
Date Written: March 2008
We examine auction data to determine if bid rigging presents in procurement auctions for paving works in Ibaraki City, Osaka, Japan. We first show that sporadic bidding wars are caused by the participation ofpotential outsiders. Assuming that the ring is all-inclusive if the auction is not the bidding war, we estimate the scheme by which the ring allocates a win to its members. It is found that the ring tends to select a bidder whose winless period is long and whose winning amount in the past is small relative to other bidders.
Keywords: Bid rigging, repeated auction
JEL Classification: D44, H57, L44
Suggested Citation: Suggested Citation
Ishii, Rieko, Collusion in Repeated Procurement Auction: A Study of a Paving Market in Japan (March 2008). ISER Discussion Paper No. 710. Available at SSRN: https://ssrn.com/abstract=1148064 or http://dx.doi.org/10.2139/ssrn.1148064