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 1.5 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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| Author: | Klaus Gugler, Michael Weichselbaumer, Christine Zulehner |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-373598 |
| DOI: | https://doi.org/10.1016/j.euroecorev.2014.10.007 |
| ISSN: | 1873-572X |
| ISSN: | 0014-2921 |
| Pubmed Id: | https://pubmed.ncbi.nlm.nih.gov/25673884 |
| Parent Title (English): | European economic review : EER |
| Publisher: | Elsevier |
| Place of publication: | Amsterdam |
| Document Type: | Article |
| Language: | English |
| Date of Publication (online): | 2014/11/12 |
| Date of first Publication: | 2014/11/12 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2015/04/25 |
| Tag: | Construction procurement; Economic crisis; First-price auctions; Government stimulus; Private values |
| Volume: | 73 |
| Page Number: | 23 |
| First Page: | 35 |
| Last Page: | 57 |
| Note: | This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/3.0/). |
| HeBIS-PPN: | 369126130 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Creative Commons - Namensnennung 3.0 |
