Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico

In public procurement auctions, governments routinely offer preferences to qualified firms in the form of bid discounts. Previous studies on bid discounting do not account for affiliation – a form of cost dependence between bidders that is likely to occur in a public procurement environment. Utilizi...

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Bibliographic Details
Main Author: Rosa, B.V (Author)
Format: Article
Language:English
Published: Blackwell Publishing Ltd 2019
Online Access:View Fulltext in Publisher
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020 |a 00221821 (ISSN) 
245 1 0 |a Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico 
260 0 |b Blackwell Publishing Ltd  |c 2019 
856 |z View Fulltext in Publisher  |u https://doi.org/10.1111/joie.12202 
520 3 |a In public procurement auctions, governments routinely offer preferences to qualified firms in the form of bid discounts. Previous studies on bid discounting do not account for affiliation – a form of cost dependence between bidders that is likely to occur in a public procurement environment. Utilizing data from the New Mexico Department of Transportation’s Resident Preference Program, I develop and estimate an empirical model of firm bidding and entry that allows for affiliation in firms’ project costs. I find evidence of affiliation and show how it changes preference auction outcomes. © 2019 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd 
700 1 |a Rosa, B.V.  |e author 
773 |t Journal of Industrial Economics