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Efficiency and bid rigging in simultaneous procurement auctions under oligopoly

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... The social relation and human interaction in the procurement process, especially in the public office, is mostly shielded with organised secrecy and is not easily visible to the public at large (Gottschalk, 2019). Public sector fraud generates the perception that officials and/or politicians formulate policy and spend in favour of certain groups, industries, or suppliers for private gain (Hazak et al., 2020;Sargiacomo et al., 2015). Fraud and corruption in public procurement stem from opportunities arising within the procurement process to conduct such practices; for example, the opportunity by those in power in public office to award government contracts to powerful business elites. ...
... An appropriate method to analyze market discontinuities on a given auction market is the statistical analysis of the bidding time series on that market (Hazak et al. 2016;Vadász et al. 2016). ...
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This paper analyses the public procurement auctions for snow removal contracts to find out whether bid-rigging occurred. Due to the limited participation in the auction processes, detection of anticompetitive agreements was possible. The econometric analysis used in our study supported the findings of a cartel agreement. Cluster analysis, statistical hypothesis, normality and symmetry and nonparametric tests reveal two types of auctions: competitive and noncompetitive bids. The aim of this paper is to analyze the public procurement auctions with nonparametric statistical methods. Our findings are in line with the literature in the field.
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