On the Fuzzy Concept of Competition in Public Procurement

28 Pages Posted: 13 May 2019

See all articles by Gian Luigi Albano

Gian Luigi Albano

Consip S.p.A. - The National Central Purchasing Body; LUISS "G. Carli", Department of Economics and Finance

Date Written: April 15, 2019

Abstract

Effective competition is often recognized as instrumental to achieve the highest level of value for money in public procurement. At the same time, enlarging the set of participating firms is also seen as way to raise the intensity of competition. This paper argues that even in simple competitive environments with undifferentiated products the link between participation and competition is less obvious than normally assumed. Policy makers’ increasing concerns for primary as well as secondary objectives in public procurement tend to further weaken the link between participation and competion. Moreover, regulatory constraints to favor multi-award outcomes, while blurring the concept of competition altogether, risk to create the conditions for anti-competitive outcomes.

Keywords: Public procurement, competition, lots, participation and award limits

JEL Classification: H57, K21, D40

Suggested Citation

Albano, Gian Luigi, On the Fuzzy Concept of Competition in Public Procurement (April 15, 2019). Available at SSRN: https://ssrn.com/abstract=3372085 or http://dx.doi.org/10.2139/ssrn.3372085

Gian Luigi Albano (Contact Author)

Consip S.p.A. - The National Central Purchasing Body ( email )

Via Isonzo, 19/E
Rome, 00198
Italy
+39 06 85449.627 (Phone)

LUISS "G. Carli", Department of Economics and Finance ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

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