Corruption In Public Procurement Auctions
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Corruption In Public Procurement Auctions
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Author : Maria Monica Wihardja
language : en
Publisher:
Release Date : 2009
Corruption In Public Procurement Auctions written by Maria Monica Wihardja and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009 with categories.
We provide a positive analysis of the equilibrium bidding and bribing strategies with and without corruption in a first-price, sealed-bid, procurement auction with two-dimensional-type bidders. With corruption, we assume that the quality of the bidders are unobservable and non-contractible ex-post. We show examples of equilibrium bids and bribes of N two-dimensional-type bidders in an incomplete information game where the type space is discrete and strategy space is infinite. The equilibrium bid and bribe decrease in the number of bidders. Moreover, we show that in this auction with corruption, quality is randomly chosen, constraining efficiency. In fact, no mechanism can be efficient in this auction. The empirical study suggests that increasing the number of bidders increases the percentage cost efficiency at a decreasing rate and it starts to decrease the percentage cost efficiency after it reaches a certain number of bidders.
Competition In Procurement Auctions With Corruption
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Author : Daniel Z. Li
language : en
Publisher:
Release Date : 2016
Competition In Procurement Auctions With Corruption written by Daniel Z. Li and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
We study the effects of corruption on equilibrium competition and social welfare in a first-price public procurement auction. In our model, firms are invited into the auction at positive costs, and a bureaucrat runs the auction on behalf of a government, who may request a bribe from the winning firm afterward. We first show that, in the absence of corruption, the bureaucrat will invite more than socially optimal number of firms into the auction. Secondly, the effects of corruption on equilibrium competition and social welfare vary across different forms of bribery. In the case of fixed bribe, corruption has no effect on equilibrium competition, yet does induce social welfare loss due to the distortion cost of increased public spending. In the case of proportional bribe, the bureaucrat may invite fewer or more firms into the auction, depending on how much the bureaucrat weights on his personal interest. Thirdly, we show that information disclosure may result in more dispersed distribution of firms' cost estimates, and induce more firms to be invited, no matter there is corruption or not. Finally, we also provide some discussions on the policy implications of our model.
Integrity In Public Procurement Good Practice From A To Z
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Author : OECD
language : en
Publisher: OECD Publishing
Release Date : 2007-04-27
Integrity In Public Procurement Good Practice From A To Z written by OECD and has been published by OECD Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007-04-27 with categories.
Provides, for the first time, a comparative overview of practices from A to Z. It maps out practices to enhance integrity throughout the whole procurement cycle, from needs assessment to contract management. It also takes a global stance by including practices from non-OECD countries.
Combatting Corruption And Collusion In Public Procurement
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Author : Robert D. Anderson
language : en
Publisher: Oxford University Press
Release Date : 2024-03-06
Combatting Corruption And Collusion In Public Procurement written by Robert D. Anderson and has been published by Oxford University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2024-03-06 with Law categories.
'Corruption' in public procurement typically involves procurement decisions taken in favour of preferred bidders in exchange for improper compensation (the acceptance of bribes, for example), while supplier collusion refers to a type of cartel activity, in which firms rig their bids in a tendering process. Although these practices are distinct, they frequently occur together in the public procurement context, reinforcing one another. Combatting Corruption and Collusion in Public Procurement: A Challenge for Governments Worldwide examines the causes of corruption and collusion in the public procurement sphere, its resulting harm, and how states can best try to combat these practices. This book provides a legal, economic, and practical analysis of issues concerning corruption and supplier collusion in public procurement, both generally and in seven diverse and representative jurisdictions: the United Kingdom, the United States, Brazil, Hungary and Poland, Ukraine, and Canada. It encompasses a discussion of both 'generic' cross-jurisdictional issues and specific proposals for individual jurisdictions. It offers practical guidance on building robust regimes for combatting corruption and collusion in public procurement and how to bolster and improve them when they are faltering. The book stresses the need for a multi-faceted and joined-up approach to the problems, emphasizing the importance both of enhanced investment in the effective enforcement of anti-corruption and cartel laws and of increasing the resilience of public procurement systems to corruption and collusion through a range of measures. The relevance of the topic to the social and economic well-being of citizens and the survival of democratic governance is highlighted throughout the book. Pioneering and comprehensive, Combatting Corruption and Collusion in Public Procurement provides a pathbreaking analysis of a range of global issues, making it an essential read for scholars, lawyers, government officials and representatives of international and non-governmental organizations around the world.
Fighting Corruption And Promoting Integrity In Public Procurement
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Author : OECD
language : en
Publisher: OECD Publishing
Release Date : 2005-12-07
Fighting Corruption And Promoting Integrity In Public Procurement written by OECD and has been published by OECD Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005-12-07 with categories.
This volume comprises papers presented at the OECD Global Forum on Governance: Fighting Corruption and Promoting Integrity in Public Procurement held in Paris in November 2004.
Corruption In Procurement Auctions
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Author : Yvan Lengwiler
language : en
Publisher:
Release Date : 2017
Corruption In Procurement Auctions written by Yvan Lengwiler and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.
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.
Anti Corruption In Public Procurement Balancing The Policies
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Author :
language : en
Publisher: CSD
Release Date : 2011
Anti Corruption In Public Procurement Balancing The Policies written by and has been published by CSD this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011 with Government purchasing categories.
Bribery In Public Procurement Methods Actors And Counter Measures
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Author : OECD
language : en
Publisher: OECD Publishing
Release Date : 2007-05-21
Bribery In Public Procurement Methods Actors And Counter Measures written by OECD and has been published by OECD Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007-05-21 with categories.
A ground-breaking report that throws new light on the shadowy mechanisms and patterns of bribery in public procurement, and offers insider expertise that governments and international organisations can use to improve their anti-corruption policies.
Handbook Of Procurement
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Author : Nicola Dimitri
language : en
Publisher: Cambridge University Press
Release Date : 2006-09-28
Handbook Of Procurement written by Nicola Dimitri and has been published by Cambridge University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006-09-28 with Business & Economics categories.
How can organizations ensure that they can get best value for money in their procurement decisions? How can they stimulate innovations from their dedicated suppliers? With contributions from leading academics and professionals, this 2006 handbook offers expert guidance on the fundamental aspects of successful procurement design and management in firms, public administrations, and international institutions. The issues addressed include the management of dynamic procurement; the handling of procurement risk; the architecture of purchasing systems; the structure of incentives in procurement contracts; methods to increase suppliers' participation in procurement contests and e-procurement platforms; how to minimize the risk of collusion and of corruption; pricing and reputation mechanisms in e-procurement platforms; and how procurement can enhance innovation. Inspired by frontier research, it provides practical recommendations to managers, engineers and lawyers engaged in private and public procurement design.
Rules Discretion And Corruption In Procurement
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Author : Francesco Decarolis
language : en
Publisher:
Release Date : 2020
Rules Discretion And Corruption In Procurement written by Francesco Decarolis and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with Government purchasing categories.
The benefits of bureaucratic discretion depend on the extent to which it is used for public benefit versus exploited for private gain. We study the relationship between discretion and corruption in Italian government procurement auctions, using a confidential database of firms and procurement officials investigated for corruption by Italian enforcement authorities. Based on a regression discontinuity design around thresholds for discretion, we find that, overall, a large increase in the use of discretionary procedures in the 2000s led to a minimal increase in auctions won by investigated firms. By further investigating the attributes of "corrupted'' auctions, we uncover two main factors that drive this "non-result.'' First, discretionary procedure auctions are associated with corruption only when conducted with fewer than the formally required number of bidders or employing discretionary criteria ("scoring rule'' rather than first price), which comprise a small fraction of discretionary auctions overall. We further show that, while these "corruptible'' discretionary auctions are chosen more often by officials who are themselves investigated for corruption, they are used less often in procurement administrations in which at least one official is investigated for corruption. These findings fit with a framework in which more discretion leads to greater efficiency as well as more opportunities for theft, and a central monitor manages this trade-off by limiting discretion for high-corruption procedures and locales. Additional results based on two standard tools for curbing corruption -- turnover and subcontracting limits -- corroborate this interpretation. Overall, our results imply that discretion is under-utilized, given the high potential benefits as compared to the modest increment in corruption.