The Impact of Open Data on Public Procurement

88 Pages Posted: 27 Nov 2019 Last revised: 4 Aug 2022

See all articles by Raphael Duguay

Raphael Duguay

Yale School of Management; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Thomas Rauter

University of Chicago - Booth School of Business

Delphine Samuels

University of Chicago -- Booth School of Business

Date Written: August 4, 2022

Abstract

We examine how open procurement data affect the competitiveness of award procedures and the execution of government contracts. In the European Union, two separate open data initiatives made historical procurement notices available for bulk download as cohesive and user-friendly databases, treating contracts above and below size thresholds at different points in time. Using a difference-in-differences design, we find that, after each open data initiative, procurement officials are more likely to award treated contracts through open bidding. In cross-sectional analyses, we document variation in the open bidding effect consistent with two underlying mechanisms: (i) increased scrutiny by NGOs and investigative journalists, and (ii) learning by national procurement regulators. However, treated contracts are also more likely to experience costly modifications because the shift to open bidding introduces rigidity that limits officials’ discretion in selecting suppliers based on private information. Overall, these results indicate that open procurement data promote competitive bidding but lead to contracts with weaker execution performance.

Keywords: Public Procurement; Open Data; Competition; Contract Modifications; Public Scrutiny; Regulatory Learning

JEL Classification: D61; G38; H57; M41

Suggested Citation

Duguay, Raphael and Rauter, Thomas and Samuels, Delphine, The Impact of Open Data on Public Procurement (August 4, 2022). Available at SSRN: https://ssrn.com/abstract=3483868 or http://dx.doi.org/10.2139/ssrn.3483868

Raphael Duguay

Yale School of Management ( email )

165 Whitney Ave
New Haven, CT 06511
United States

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Thomas Rauter (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Delphine Samuels

University of Chicago -- Booth School of Business ( email )

1101 East 58th Street
Chicago, IL 60637-1561
United States

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