TY - JOUR
T1 - Public Procurement Auctions and Competition in Turkey
AU - Onur, Ilke
AU - Özcan, Rasim
AU - Taş, Bedri Kamil Onur
N1 - Funding Information:
Acknowledgments We are grateful to the Public Procurement Authority of Turkey (PPA) for providing us the data that are used in this paper, and to Mr. Yakup Kılıç for clarifying questions. The results in this paper do not represent the views of the PPA. Bedri Kamil Onur Tas¸ acknowledges research support from The Scientific and Technological Research Council of Turkey Grant No. 108K450. The sample dataset is available at the corresponding author’s website. For the complete dataset, please contact the PPA of Turkey.
PY - 2012/5
Y1 - 2012/5
N2 - This paper empirically investigates the effect of the competitive environment (number of participants) on the cost of procurement. We use a unique dataset provided by the Public Procurement Authority (PPA) of Turkey that covers all of the government procurement auctions for the years 2004-2006. First, after controlling for possible endogeneity, we show that the number of bidders significantly and negatively affects the procurement price. Thus, the existence of a more competitive environment significantly decreases procurement costs in Turkey. Second, when auctions are open to foreign participation, the auction price tends to be lower. Finally, prices in services and goods sectors are more sensitive to changes in the number of bidders than is true for the construction sector. The results of this paper have several policy implications for e-procurement and efficient procurement design.
AB - This paper empirically investigates the effect of the competitive environment (number of participants) on the cost of procurement. We use a unique dataset provided by the Public Procurement Authority (PPA) of Turkey that covers all of the government procurement auctions for the years 2004-2006. First, after controlling for possible endogeneity, we show that the number of bidders significantly and negatively affects the procurement price. Thus, the existence of a more competitive environment significantly decreases procurement costs in Turkey. Second, when auctions are open to foreign participation, the auction price tends to be lower. Finally, prices in services and goods sectors are more sensitive to changes in the number of bidders than is true for the construction sector. The results of this paper have several policy implications for e-procurement and efficient procurement design.
KW - Competition effects
KW - Public procurement auctions
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U2 - 10.1007/s11151-011-9299-3
DO - 10.1007/s11151-011-9299-3
M3 - Article
AN - SCOPUS:84859217853
SN - 0889-938X
VL - 40
SP - 207
EP - 223
JO - Review of Industrial Organization
JF - Review of Industrial Organization
IS - 3
ER -