On the Competitive Effects of Screening in Procurement

A-Tier
Journal: Journal of Industrial Economics
Year: 2025
Volume: 73
Issue: 3
Pages: 411-425

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study estimates the effect of screening and litigation using a unique data set on highway construction procurement auctions in Poland. Procurement authorities frequently use screening to mitigate default risk. However, eliminating bidders reduces competition and may discourage entry. The examined market exhibits a screening method that ex‐post selects eligible offers. We demonstrate with a reduced‐form model that this method disproportionately affects small firms and decreases entry, indirectly inflating bids and prices as a consequence.

Technical Details

RePEc Handle
repec:bla:jindec:v:73:y:2025:i:3:p:411-425
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29