Corruption in Procurement Auctions

Lengwiler, Yvan; Wolfstetter, Elmar

doi:10.2139/ssrn.874705

Corruption in Procurement Auctions

Handbook of Procurement. Ed. by N. Dimitri, G. Piga, and G. Spagnolo. Cambridge University Press, 2006, pp.412–429.

16 Pages Posted: 11 Jan 2006 Last revised: 31 Oct 2017

See all articles by Yvan Lengwiler

Yvan Lengwiler

University of Basel - Faculty of Business and Economics (WWZ)

Elmar Wolfstetter

Humboldt University of Berlin - Faculty of Economics; Korea University - College of Economics and Commerce; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: January 10, 2006

Abstract

We review different kinds of corruption that have been observed in procurement auctions and categorize them. We discuss means to avoid corruption, by choice of preferable auction formats, or with the help of technological tools, such as secure electronic bidding systems. Auctions that involve some soft elements, such as complex bids consisting of technical and financial proposals, are particularly prone to corruption. We do not believe that it is possible to eradicate corruption altogether in such situations, but we discuss means to make it less likely.

Keywords: auctions, corruption

JEL Classification: D44

Suggested Citation: Suggested Citation

Lengwiler, Yvan and Wolfstetter, Elmar G., Corruption in Procurement Auctions (January 10, 2006). Handbook of Procurement. Ed. by N. Dimitri, G. Piga, and G. Spagnolo. Cambridge University Press, 2006, pp.412–429.. Available at SSRN: https://ssrn.com/abstract=874705 or http://dx.doi.org/10.2139/ssrn.874705