Competition in the economic crisis: Analysis of procurement auctions

We study the effects of the recent economic crisis on firms׳ bidding behavior and markups in sealed bid auctions. Using data from Austrian construction procurements, we estimate bidders׳ construction costs within a private value auction model. We find that markups of all bids submitted decrease by 1...

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Detalles Bibliográficos
Autores principales: Gugler, Klaus, Weichselbaumer, Michael, Zulehner, Christine
Formato: Online Artículo Texto
Lenguaje:English
Publicado: IASP 2015
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4318169/
https://www.ncbi.nlm.nih.gov/pubmed/25673884
http://dx.doi.org/10.1016/j.euroecorev.2014.10.007
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author Gugler, Klaus
Weichselbaumer, Michael
Zulehner, Christine
author_facet Gugler, Klaus
Weichselbaumer, Michael
Zulehner, Christine
author_sort Gugler, Klaus
collection PubMed
description We study the effects of the recent economic crisis on firms׳ bidding behavior and markups in sealed bid auctions. Using data from Austrian construction procurements, we estimate bidders׳ construction costs within a private value auction model. We find that markups of all bids submitted decrease by 1.5 percentage points in the recent economic crisis, markups of winning bids decrease by 3.3 percentage points. We also find that without the government stimulus package this decrease would have been larger. These two pieces of evidence point to pro-cyclical markups.
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spelling pubmed-43181692015-02-09 Competition in the economic crisis: Analysis of procurement auctions Gugler, Klaus Weichselbaumer, Michael Zulehner, Christine Eur Econ Rev Article We study the effects of the recent economic crisis on firms׳ bidding behavior and markups in sealed bid auctions. Using data from Austrian construction procurements, we estimate bidders׳ construction costs within a private value auction model. We find that markups of all bids submitted decrease by 1.5 percentage points in the recent economic crisis, markups of winning bids decrease by 3.3 percentage points. We also find that without the government stimulus package this decrease would have been larger. These two pieces of evidence point to pro-cyclical markups. IASP 2015-01 /pmc/articles/PMC4318169/ /pubmed/25673884 http://dx.doi.org/10.1016/j.euroecorev.2014.10.007 Text en © 2014 The Authors http://creativecommons.org/licenses/by/3.0/ This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/3.0/).
spellingShingle Article
Gugler, Klaus
Weichselbaumer, Michael
Zulehner, Christine
Competition in the economic crisis: Analysis of procurement auctions
title Competition in the economic crisis: Analysis of procurement auctions
title_full Competition in the economic crisis: Analysis of procurement auctions
title_fullStr Competition in the economic crisis: Analysis of procurement auctions
title_full_unstemmed Competition in the economic crisis: Analysis of procurement auctions
title_short Competition in the economic crisis: Analysis of procurement auctions
title_sort competition in the economic crisis: analysis of procurement auctions
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4318169/
https://www.ncbi.nlm.nih.gov/pubmed/25673884
http://dx.doi.org/10.1016/j.euroecorev.2014.10.007
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