TY  - JOUR
A1  - Gugler, Klaus
A1  - Weichselbaumer, Michael
A1  - Zulehner, Christine
T1  - Competition in the economic crisis : analysis of procurement auctions
T2  - European economic review : EER
N2  - 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.
KW  - Construction procurement
KW  - Economic crisis
KW  - First-price auctions
KW  - Government stimulus
KW  - Private values
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/37359
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-373598
SN  - 1873-572X
SN  - 0014-2921
N1  - This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/3.0/).
VL  - 73
SP  - 35
EP  - 57
PB  - Elsevier
CY  - Amsterdam
ER  -