Protection in government procurement auctions

A-Tier
Journal: Journal of International Economics
Year: 2017
Volume: 106
Issue: C
Pages: 134-142

Authors (3)

Cole, Matthew T. (not in RePEc) Davies, Ronald B. (not in RePEc) Kaplan, Todd (University of Haifa)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

Discrimination against foreign bidders in procurement auctions has typically been achieved by price preferences. We demonstrate that in the bidding game, each level of protection via a price preference can be achieved by an equivalent tariff. When government welfare depends only on net expenditures, this equivalence carries over to the government's decision. As such, this equivalence provides a justification that agreements to eliminate price preferences to be taken in tandem with agreements to lower tariffs; e.g., the Government Procurement Agreement (GPA) in the broader context of the WTO.

Technical Details

RePEc Handle
repec:eee:inecon:v:106:y:2017:i:c:p:134-142
Journal Field
International
Author Count
3
Added to Database
2026-01-25