An Evaluation of a Bidder Training Program
43 Pages Posted: 8 Nov 2013 Last revised: 13 Jun 2019
Date Written: June 12, 2019
In an effort to accommodate a change in the Federal Highway Administration's goals towards race-neutral methods concerning the involvement of Disadvantaged Business Enterprises in contracting, the Texas Department of Transportation created a bidder training program. Using ten years of data, we examine the effects this program had on bidder behavior, project costs for the government, and the ability of these firms to compete. Unlike other policies that target these firms, we find the program generated substantial savings for the state which come at a very low cost.
Keywords: Auctions, bidder training, disadvantaged business enterprises
JEL Classification: C54, D44
Suggested Citation: Suggested Citation