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Different design - different cost: an empirical analysis of combinatorial public procurement bidding of road maintenance
Örebro University, Örebro University School of Business.ORCID iD: 0000-0002-1746-7884
Nationalekonomiska institutionen, Umeå universitet, Umeå, Sweden.
2012 (English)In: Journal of Public Procurement, ISSN 1535-0118, E-ISSN 2150-6930, Vol. 12, no 3, p. 407-422Article in journal (Refereed) Published
Abstract [en]

This paper is an empirical analysis of firs-price sealed bid procurement auctions in Sweden, with and without combinatorial bidding. The data comprises procurement auctions of identical contracts (road resurfacing) with identical bidders under the same time period (2009-2011) in two different regions in Sweden. Given the comparison of the suppliers' offered price per tons of asphalt, we cannot reject the hypothesis of identical distribution of standalone bids generated in both types of auction. The distribution of package bids within the combinatorial format is significantly lower than the distribution of standalone bids within the non-combinatorial format, suggesting substantial cost reduction of allowing package bidding. Also, within the combinatorial format, our analysis od data indicates higher costs when packages are predetermined by the purchaser rather than chosen freely by the suppliers.

Place, publisher, year, edition, pages
Academic Press, 2012. Vol. 12, no 3, p. 407-422
Keyword [sv]
Offentlig upphandling
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-28875Scopus ID: 2-s2.0-84876228469OAI: oai:DiVA.org:oru-28875DiVA, id: diva2:618909
Projects
Effektivare offentlig upphandling
Funder
Swedish Competition Authority
Available from: 2013-04-30 Created: 2013-04-30 Last updated: 2018-05-12Bibliographically approved

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