Corruption and renegotiation in procurement

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 255
Issue: C

Authors (3)

Arozamena, Leandro (Universidad Torcuato Di Tella) Ganuza, Juan-José (not in RePEc) Weinschelbaum, Federico (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

A government agency uses a procurement auction to select a supplier for an incomplete contract that may be renegotiated after awarding. We study a case where a firm can bribe the monitoring agent to gain preferential treatment during renegotiation. If bribery occurs, the corrupt firm bids more aggressively and has a higher chance of winning. The likelihood of corruption increases when contracts are less complete, the corrupt firm’s cost is more likely to be similar to her rivals’, and when there are fewer competitors.

Technical Details

RePEc Handle
repec:eee:ecolet:v:255:y:2025:i:c:s0165176525003337
Journal Field
General
Author Count
3
Added to Database
2026-01-24