IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i5p643-d802818.html
   My bibliography  Save this article

The Influence of Collusive Information Dissemination on Bidder’s Collusive Willingness in Urban Construction Projects

Author

Listed:
  • Xiaowei Wang

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China)

  • Kunhui Ye

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China
    Research Center for Construction Economy and Management, Chongqing University, Chongqing 400044, China)

  • Taozhi Zhuang

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400045, China)

  • Rui Liu

    (Department of Construction and Real Estate, School of Civil Engineering, Southeast University, Nanjing 211189, China)

Abstract

The process of urbanization and urban regeneration is inseparable from the implementation of urban construction projects. Current studies show a large amount of collusive bidding in urban construction projects, which has seriously affected healthy and sustainable urban development. Therefore, the governance of collusive bidding in urban construction projects is crucial to sustainable urbanization and urban renewal. In reality, the collusion information dissemination (CID) is a key influential factor in the bidder’s collusive willingness (BCW). Knowing the influence of CID on BCW will help city managers to have a clearer understanding of the causes and governance focus of collusive bidding. Thus, the study using the multi-agent simulation technology simulates the influence of CID on BCW in different market scales, communication intensities, and trust boundaries based on the Deffuant model. The research found that the negative impact of the CID on the market is more incredible in cities with smaller market sizes, and effectively inhibiting the CID can reduce the occurrence of collusion. Moreover, the research also found that colluders always form their collusive alliances within CID networks. These findings suggest that urban managers should strengthen the suppression of collusive bidding by weakening the dissemination of collusive information and blocking the CID networks.

Suggested Citation

  • Xiaowei Wang & Kunhui Ye & Taozhi Zhuang & Rui Liu, 2022. "The Influence of Collusive Information Dissemination on Bidder’s Collusive Willingness in Urban Construction Projects," Land, MDPI, vol. 11(5), pages 1-14, April.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:5:p:643-:d:802818
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/5/643/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/11/5/643/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roux, Catherine & Thöni, Christian, 2015. "Collusion among many firms: The disciplinary power of targeted punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 83-93.
    2. Bolotova, Yuliya & Connor, John M. & Miller, Douglas J., 2008. "The impact of collusion on price behavior: Empirical results from two recent cases," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1290-1307, November.
    3. Guillaume Deffuant & Frederic Amblard & Gérard Weisbuch, 2002. "How Can Extremism Prevail? a Study Based on the Relative Agreement Interaction Model," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 5(4), pages 1-1.
    4. Xiaowei Wang & Wuyan Long & Meiyue Sang & Yang Yang, 2022. "Towards Sustainable Urbanization: Exploring the Influence Paths of the Urban Environment on Bidders’ Collusive Willingness," Land, MDPI, vol. 11(2), pages 1-14, February.
    5. Richard Ray & John Hornibrook & Martin Skitmore & Anna Zarkada-Fraser, 1999. "Ethics in tendering: a survey of Australian opinion and practice," Construction Management and Economics, Taylor & Francis Journals, vol. 17(2), pages 139-153.
    6. Huang, Chuanchao & Hu, Bin & Jiang, Guoyin & Yang, Ruixian, 2016. "Modeling of agent-based complex network under cyber-violence," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 458(C), pages 399-411.
    7. Edmond Baranes & Francois Mirabel & Jean-Christophe Poudou, 2009. "Collusion Sustainability with Multimarket Contacts: Revisiting HHI Tests," Working Papers 09-05, LAMETA, Universtiy of Montpellier, revised Mar 2009.
    8. Michael K. Price, 2008. "Using The Spatial Distribution Of Bidders To Detect Collusion In The Marketplace: Evidence From Timber Auctions," Journal of Regional Science, Wiley Blackwell, vol. 48(2), pages 399-417, May.
    9. Dimitri,Nicola & Piga,Gustavo & Spagnolo,Giancarlo (ed.), 2006. "Handbook of Procurement," Cambridge Books, Cambridge University Press, number 9780521870733, November.
    10. Wei Lo & Raymond Krizek & Ahmad Hadavi, 1999. "Effects of high prequalification requirements," Construction Management and Economics, Taylor & Francis Journals, vol. 17(5), pages 603-612.
    11. S.Z.S. Tabish & Kumar Neeraj Jha, 2012. "The impact of anti-corruption strategies on corruption free performance in public construction projects," Construction Management and Economics, Taylor & Francis Journals, vol. 30(1), pages 21-35, December.
    12. Robert Porter, 2005. "Collusion in Industrial Economics: A Comment," Journal of Industry, Competition and Trade, Springer, vol. 5(3), pages 231-234, December.
    13. Anna Zarkada-Fraser & Martin Skitmore, 2000. "Decisions with moral content: collusion," Construction Management and Economics, Taylor & Francis Journals, vol. 18(1), pages 101-111.
    14. S. Z. S. Tabish & Kumar Neeraj Jha, 2011. "Analyses and evaluation of irregularities in public procurement in India," Construction Management and Economics, Taylor & Francis Journals, vol. 29(3), pages 261-274.
    15. Martin Besfamille, 2004. "Collusion In Local Public Works," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1193-1219, November.
    16. Anderson, E.J. & Cau, T.D.H., 2011. "Implicit collusion and individual market power in electricity markets," European Journal of Operational Research, Elsevier, vol. 211(2), pages 403-414, June.
    17. Paul Anthony Bowen & Peter J. Edwards & Keith Cattell, 2012. "Corruption in the South African construction industry: a thematic analysis of verbatim comments from survey participants," Construction Management and Economics, Taylor & Francis Journals, vol. 30(10), pages 885-901, October.
    18. Rajeev Goel & Michael Nelson, 2011. "Measures of corruption and determinants of US corruption," Economics of Governance, Springer, vol. 12(2), pages 155-176, June.
    19. Ranon Chotibhongs & David Arditi, 2012. "Analysis of collusive bidding behaviour," Construction Management and Economics, Taylor & Francis Journals, vol. 30(3), pages 221-231, January.
    20. Harrington, Joseph E., 2014. "Penalties and the deterrence of unlawful collusion," Economics Letters, Elsevier, vol. 124(1), pages 33-36.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liping Li & Qisheng Chen & Ximeng Jia & Jin Chen & Enrique Herrera-Viedma, 2024. "The collusion behavior of venture capitalists and entrepreneurs based on “guanxi”: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaowei Wang & Wuyan Long & Meiyue Sang & Yang Yang, 2022. "Towards Sustainable Urbanization: Exploring the Influence Paths of the Urban Environment on Bidders’ Collusive Willingness," Land, MDPI, vol. 11(2), pages 1-14, February.
    2. Zhao Zhai & Ming Shan & Amos Darko & Albert P. C. Chan, 2021. "Corruption in Construction Projects: Bibliometric Analysis of Global Research," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    3. Martin Huber & David Imhof & Rieko Ishii, 2022. "Transnational machine learning with screens for flagging bid‐rigging cartels," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(3), pages 1074-1114, July.
    4. Granlund, David & Rudholm, Niklas, 2023. "Calculating the probability of collusion based on observed price patterns," Umeå Economic Studies 1014, Umeå University, Department of Economics, revised 13 Oct 2023.
    5. Estache, Antonio & Iimi, Atsushi, 2011. "(Un)bundling infrastructure procurement: Evidence from water supply and sewage projects," Utilities Policy, Elsevier, vol. 19(2), pages 104-114, June.
    6. Bilal Manzoor & Idris Othman & Juan Carlos Pomares, 2021. "Digital Technologies in the Architecture, Engineering and Construction (AEC) Industry—A Bibliometric—Qualitative Literature Review of Research Activities," IJERPH, MDPI, vol. 18(11), pages 1-26, June.
    7. Ionel PREDA & Cezar-Petre SIMION, 2020. "Characteristics Of Emergency Public Procurement Carried Out In Romania As A Result Of The Covid-19 Crisis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 615-629, November.
    8. Alexandra V. Orlova & Veselin Boichev, 2017. "“Corruption Is Us†: Tackling Corruption by Examining the Interplay Between Formal Rules and Informal Norms Within the Russian Construction Industry," Journal of Developing Societies, , vol. 33(4), pages 401-427, December.
    9. Brown, David P. & Eckert, Andrew & Silveira, Douglas, 2023. "Screening for collusion in wholesale electricity markets: A literature review," Utilities Policy, Elsevier, vol. 85(C).
    10. Seyed Ashkan Zarghami, 2024. "The Labyrinth of Corruption in the Construction Industry: A System Dynamics Model Based on 40 Years of Research," Journal of Business Ethics, Springer, vol. 195(2), pages 335-352, November.
    11. Zhu, Hou & Hu, Bin, 2018. "Impact of information on public opinion reversal—An agent based model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 512(C), pages 578-587.
    12. Emilie Dargaud & Armel Jacques, 2023. "Intermittent Collusive Agreements: Antitrust Policy and Business Cycles," Post-Print hal-04206725, HAL.
    13. Huber, Martin & Imhof, David, 2023. "Flagging cartel participants with deep learning based on convolutional neural networks," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    14. Brown, David P. & Eckert, Andrew & Silveira, Douglas, 2023. "Screening for Collusion in Wholesale Electricity Markets: A Review of the Literature," Working Papers 2023-7, University of Alberta, Department of Economics.
    15. Ionel PREDA, 2019. "Analysis of Centralized Public Procurement in the European Union, the United States of America and Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 20(4), pages 459-472, October.
    16. Anna Matas & Ginés de Rus & Stef Proost & Salvador Bertoméu-Sánchez & Antonio Estache, 2018. "The Financing of Infrastructure / La financiación de las infraestructuras / El finançament de les infraestructures," IEB Reports ieb_report_1_2018, Institut d'Economia de Barcelona (IEB).
    17. Georghiou, Luke & Edler, Jakob & Uyarra, Elvira & Yeow, Jillian, 2014. "Policy instruments for public procurement of innovation: Choice, design and assessment," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 1-12.
    18. Zhang, Tianyu & Dong, Peiwu & Zeng, Yongchao & Ju, Yanbing, 2022. "Analyzing the diffusion of competitive smart wearable devices: An agent-based multi-dimensional relative agreement model," Journal of Business Research, Elsevier, vol. 139(C), pages 90-105.
    19. Spagnolo, Giancarlo & Barbosa, Kleno, 2019. "Corrupting Cartels: An Overview of the Petrobras Case," SITE Working Paper Series 51, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 30 Oct 2019.
    20. Iuliana Zlatcu & Marta-Christina Suciu, 2017. "The role of economics in cartel detection. A review of cartel screens," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 6(3), pages 16-26, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:11:y:2022:i:5:p:643-:d:802818. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.