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Auction Inefficiency And The Ways To Overcome Restrictions Of Competition In Public Procurement

Author

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  • M. Ostrovnaya
  • E. Podkolzina

Abstract

Federal Antimonopoly Service (FAS) is responsible for controlling the level of competition in the Russian economy, in particular, in public procurement. Antitrust enforcement does not increase competition in this sphere and instead often leads to higher prices. In this article we analyze the reasons for favoritism in St. Petersburg drug procurement and main actions against restrictions of competition. We show that weak sanctions of the FAS cannot break illegal longterm relations between public procurer and affiliated bidder.

Suggested Citation

  • M. Ostrovnaya & E. Podkolzina, 2014. "Auction Inefficiency And The Ways To Overcome Restrictions Of Competition In Public Procurement," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
    • Handle: RePEc:nos:voprec:y:2014:id:719
    DOI: 10.32609/0042-8736-2014-11-41-57
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    Cited by:

    1. Belev, S. & Veterinarov, V. & Matveev, E., 2023. "Vertical collusion in public procurement: Estimation based on data for R&D composite auctions," Journal of the New Economic Association, New Economic Association, vol. 59(2), pages 36-63.

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