IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v41y2011i3p263-277.html
   My bibliography  Save this article

Quantitative Methods for a New Configuration of Territorial Units in a Chilean Government Agency Tender Process

Author

Listed:
  • Guillermo Durán

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile; Departamento de Matemática, FCEN, Universidad de Buenos Aires, Buenos Aires, Argentina; CONICET, Argentina)

  • Rafael Epstein

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile)

  • Cristian Martinez

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile)

  • Gonzalo Andres Zamorano

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile)

Abstract

The Junta Nacional de Auxilio Escolar y Becas (JUNAEB) is an agency of the Chilean government with responsibility for promoting the integration and retention of socially vulnerable children in the country's school system. Its services include a school meals program under which private firms bid on supply contracts for territorial units within Chile. Before 2007, these units were defined manually and their attractiveness to potential suppliers varied. This led to a series of problems for the government, both in the contract tender process and the service provided. In this paper, we apply operations research methodologies to determine new configurations of the territorial units to ensure that their attractiveness is similar and that schools in each region of the country receive meal service of similar, good quality. This homogenization of the units' attractiveness helps reduce the uncertainty and bankruptcy risk that suppliers face, thus benefitting the entire system. Since 2007, JUNAEB has used the configurations we proposed.

Suggested Citation

  • Guillermo Durán & Rafael Epstein & Cristian Martinez & Gonzalo Andres Zamorano, 2011. "Quantitative Methods for a New Configuration of Territorial Units in a Chilean Government Agency Tender Process," Interfaces, INFORMS, vol. 41(3), pages 263-277, June.
  • Handle: RePEc:inm:orinte:v:41:y:2011:i:3:p:263-277
    DOI: 10.1287/inte.1100.0537
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1100.0537
    Download Restriction: no

    File URL: https://libkey.io/10.1287/inte.1100.0537?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rafael Epstein & Lysette Henríquez & Jaime Catalán & Gabriel Y. Weintraub & Cristián Martínez, 2002. "A Combinational Auction Improves School Meals in Chile," Interfaces, INFORMS, vol. 32(6), pages 1-14, December.
    2. Francesco Decarolis, 2009. "When the highest bidder loses the auction: theory and evidence from public procurement," Temi di discussione (Economic working papers) 717, Bank of Italy, Economic Research and International Relations Area.
    3. Sarah Parlane, 2003. "Procurement Contracts under Limited Liability," The Economic and Social Review, Economic and Social Studies, vol. 34(1), pages 1-21.
    4. Raymond G. Taylor & Michael L. Vasu & James F. Causby, 1999. "Integrated Planning for School and Community: The Case of Johnston County, North Carolina," Interfaces, INFORMS, vol. 29(1), pages 67-89, February.
    5. F Caro & T Shirabe & M Guignard & A Weintraub, 2004. "School redistricting: embedding GIS tools with integer programming," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 836-849, August.
    6. Thaler, Richard H, 1988. "Anomalies: The Winner's Curse," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 191-202, Winter.
    7. Marcos Goycoolea & Alan T. Murray & Francisco Barahona & Rafael Epstein & Andrés Weintraub, 2005. "Harvest Scheduling Subject to Maximum Area Restrictions: Exploring Exact Approaches," Operations Research, INFORMS, vol. 53(3), pages 490-500, June.
    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. F. Bonomo & J. Catalán & G. Durán & R. Epstein & M. Guajardo & A. Jawtuschenko & J. Marenco, 2017. "An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools," Annals of Operations Research, Springer, vol. 258(2), pages 569-585, November.

    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. Burguet, Roberto & Ganuza, Juan-José & Hauk, Esther, 2012. "Limited liability and mechanism design in procurement," Games and Economic Behavior, Elsevier, vol. 76(1), pages 15-25.
    2. Sander Onderstal & Ailko van der Veen, 2011. "Keeping out Trojan Horses: Auctions and Bankruptcy in the Laboratory," Tinbergen Institute Discussion Papers 11-024/1, Tinbergen Institute.
    3. Wei-Shiun Chang & Timothy C. Salmon & Krista J. Saral, 2016. "Procurement Auctions With Renegotiation And Wealth Constraints," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1684-1704, July.
    4. Eric Delmelle & Jean-Claude Thill & Dominique Peeters & Isabelle Thomas, 2014. "A multi-period capacitated school location problem with modular equipment and closest assignment considerations," Journal of Geographical Systems, Springer, vol. 16(3), pages 263-286, July.
    5. Ottorino Chillemi & Claudio Mezzetti, 2014. "Optimal procurement mechanisms: bidding on price and damages for breach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(2), pages 335-355, February.
    6. Lagziel, David, 2019. "Credit auctions and bid caps," Games and Economic Behavior, Elsevier, vol. 113(C), pages 416-422.
    7. Tobias Gesche, 2022. "Reference‐price shifts and customer antagonism: Evidence from reviews for online auctions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(3), pages 558-578, August.
    8. Sinha, Ankur & Rämö, Janne & Malo, Pekka & Kallio, Markku & Tahvonen, Olli, 2017. "Optimal management of naturally regenerating uneven-aged forests," European Journal of Operational Research, Elsevier, vol. 256(3), pages 886-900.
    9. Lawrence Choo & Todd R. Kaplan & Ro’i Zultan, 2019. "Information aggregation in Arrow–Debreu markets: an experiment," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 625-652, September.
    10. Matteo Migheli, 2017. "The winner’s curse in auctions with losses," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 16(1), pages 113-126, November.
    11. Corgnet, Brice & DeSantis, Mark & Porter, David, 2020. "The distribution of information and the price efficiency of markets," Journal of Economic Dynamics and Control, Elsevier, vol. 110(C).
    12. Leković Milјan, 2020. "Cognitive Biases as an Integral Part of Behavioral Finance," Economic Themes, Sciendo, vol. 58(1), pages 75-96, March.
    13. Michael Dooley & Peter Isard & Mark Taylor, 1992. "Exchange Rates, Country Preferences, and Gold," NBER Working Papers 4183, National Bureau of Economic Research, Inc.
    14. Ran Wei & Alan Murray, 2015. "Spatial uncertainty in harvest scheduling," Annals of Operations Research, Springer, vol. 232(1), pages 275-289, September.
    15. Francesco Decarolis, 2012. "Pricing and Incentives in Publicly Subsidized Health Care Markets: the Case of Medicare Part D," PIER Working Paper Archive 12-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    16. Daley, Brendan & Sadowski, Philipp, 2017. "Magical thinking: A representation result," Theoretical Economics, Econometric Society, vol. 12(2), May.
    17. Amy Cohn & Michael Magazine & George Polak, 2009. "Rank‐Cluster‐and‐Prune: An algorithm for generating clusters in complex set partitioning problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(3), pages 215-225, April.
    18. An Huang & Yueqing Xu & Yibin Zhang & Longhui Lu & Chao Liu & Piling Sun & Qingguo Liu, 2022. "A Spatial Equilibrium Evaluation of Primary Education Services Based on Living Circle Models: A Case Study within the City of Zhangjiakou, Hebei Province, China," Land, MDPI, vol. 11(11), pages 1-17, November.
    19. T. Gómez & M. Hernández & J. Molina & M. León & E. Aldana & R. Caballero, 2011. "A multiobjective model for forest planning with adjacency constraints," Annals of Operations Research, Springer, vol. 190(1), pages 75-92, October.
    20. Klein, Michael, 1998. "Bidding for concessions," Policy Research Working Paper Series 1957, The World Bank.

    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:inm:orinte:v:41:y:2011:i:3:p:263-277. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.