Joint Bidding in Infrastructure Procurement
To utilize public resources efficiently, it is required to take full advantage of competition in public procurement auctions. Joint bidding practices are one of the possible ways of facilitating auction competition. In theory, there are pros and cons. It may enable firms to pool their financial and experiential resources and remove barriers to entry. On the other hand, it may reduce the degree of competition and can be used as a cover for collusive behavior. The paper empirically addresses whether joint bidding is pro- or anti-competitive in Official Development Assistance procurement auctions for infrastructure projects. It reveals the possible risk of relying too much on a foreign bidding coalition and may suggest the necessity of overseeing it. The data reveal no strong evidence that joint bidding practices are compatible with competition policy, except for a few cases. In road procurements, coalitional bidding involving both local and foreign firms has been found pro-competitive. In the water and sewage sector, local joint bidding may be useful to draw out better offers from potential contractors. Joint bidding composed of only foreign companies is mostly considered anti-competitive.
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| Language: | English |
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World Bank, Washington, DC
2008-07
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| Subjects: | AFFILIATED ORGANIZATIONS, AUCTION, AUCTIONS, BARRIERS TO ENTRY, BID, BID RIGGING, BIDDERS, BIDDING, COLLABORATION, COLLUSION, COMPETITION POLICY, COMPETITIVENESS, CONTESTABILITY, CONTRACTORS, FOREIGN COMPANIES, FOREIGN FIRMS, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FIRMS, JOINT VENTURES, LABOR MARKETS, MULTINATIONAL, PARENT COMPANY, PARTICIPATION RATES, PRIVATE EQUITY, PROCUREMENT, PROCUREMENTS, RISK SHARING, TELECOMMUNICATIONS, |
| Online Access: | http://documents.worldbank.org/curated/en/2008/07/9669893/joint-bidding-infrastructure-procurement-joint-bidding-infrastructure-procurement https://hdl.handle.net/10986/6852 |
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dig-okr-1098668522024-08-08T16:39:34Z Joint Bidding in Infrastructure Procurement Estache, Antonio Iimi, Atsushi AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS To utilize public resources efficiently, it is required to take full advantage of competition in public procurement auctions. Joint bidding practices are one of the possible ways of facilitating auction competition. In theory, there are pros and cons. It may enable firms to pool their financial and experiential resources and remove barriers to entry. On the other hand, it may reduce the degree of competition and can be used as a cover for collusive behavior. The paper empirically addresses whether joint bidding is pro- or anti-competitive in Official Development Assistance procurement auctions for infrastructure projects. It reveals the possible risk of relying too much on a foreign bidding coalition and may suggest the necessity of overseeing it. The data reveal no strong evidence that joint bidding practices are compatible with competition policy, except for a few cases. In road procurements, coalitional bidding involving both local and foreign firms has been found pro-competitive. In the water and sewage sector, local joint bidding may be useful to draw out better offers from potential contractors. Joint bidding composed of only foreign companies is mostly considered anti-competitive. 2012-06-01T15:14:34Z 2012-06-01T15:14:34Z 2008-07 http://documents.worldbank.org/curated/en/2008/07/9669893/joint-bidding-infrastructure-procurement-joint-bidding-infrastructure-procurement https://hdl.handle.net/10986/6852 English Policy Research Working Paper No. 4664 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
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| region |
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| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS |
| spellingShingle |
AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS Estache, Antonio Iimi, Atsushi Joint Bidding in Infrastructure Procurement |
| description |
To utilize public resources efficiently,
it is required to take full advantage of competition in
public procurement auctions. Joint bidding practices are one
of the possible ways of facilitating auction competition. In
theory, there are pros and cons. It may enable firms to pool
their financial and experiential resources and remove
barriers to entry. On the other hand, it may reduce the
degree of competition and can be used as a cover for
collusive behavior. The paper empirically addresses whether
joint bidding is pro- or anti-competitive in Official
Development Assistance procurement auctions for
infrastructure projects. It reveals the possible risk of
relying too much on a foreign bidding coalition and may
suggest the necessity of overseeing it. The data reveal no
strong evidence that joint bidding practices are compatible
with competition policy, except for a few cases. In road
procurements, coalitional bidding involving both local and
foreign firms has been found pro-competitive. In the water
and sewage sector, local joint bidding may be useful to draw
out better offers from potential contractors. Joint bidding
composed of only foreign companies is mostly considered anti-competitive. |
| topic_facet |
AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS |
| author |
Estache, Antonio Iimi, Atsushi |
| author_facet |
Estache, Antonio Iimi, Atsushi |
| author_sort |
Estache, Antonio |
| title |
Joint Bidding in Infrastructure Procurement |
| title_short |
Joint Bidding in Infrastructure Procurement |
| title_full |
Joint Bidding in Infrastructure Procurement |
| title_fullStr |
Joint Bidding in Infrastructure Procurement |
| title_full_unstemmed |
Joint Bidding in Infrastructure Procurement |
| title_sort |
joint bidding in infrastructure procurement |
| publisher |
World Bank, Washington, DC |
| publishDate |
2008-07 |
| url |
http://documents.worldbank.org/curated/en/2008/07/9669893/joint-bidding-infrastructure-procurement-joint-bidding-infrastructure-procurement https://hdl.handle.net/10986/6852 |
| work_keys_str_mv |
AT estacheantonio jointbiddingininfrastructureprocurement AT iimiatsushi jointbiddingininfrastructureprocurement |
| _version_ |
1807154972501999616 |