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Soukromé transakční náklady zadávání veřejných zakázek a faktory ovlivňující jejich výši
[Private Transaction Costs of Procurement and Factors Affecting Their Value]

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  • Jan Pavel

Abstract

Public procurement is subject to very strict and detailed legal regulation, which generates significant transaction costs on the part of both the public and private sectors. This paper aims are to quantify the size of private transaction costs associated with participation in tenders and to identify the main factors that affect their value. The presented results are based on a survey containing 804 observations. The total value of the private transaction costs in 2012 is estimated at CZK 9 billion, which represents 1.8% of contracts value. Using regression model, we have identified factors that influence the size of transaction costs at the level of individual firms. These are relatively lower for larger contracts, supply contracts and also for more experienced companies. In contrast, higher values are found in smaller contracts, larger companies and companies that are more successful in tenders.

Suggested Citation

  • Jan Pavel, 2018. "Soukromé transakční náklady zadávání veřejných zakázek a faktory ovlivňující jejich výši [Private Transaction Costs of Procurement and Factors Affecting Their Value]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(1), pages 20-34.
    • Handle: RePEc:prg:jnlpol:v:2018:y:2018:i:1:id:1175:p:20-34
    DOI: 10.18267/j.polek.1175
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    References listed on IDEAS

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    1. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    2. Jan Pavel, 2013. "Comparison of efficiency of public procurement organized by public sector and local monopolies," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(7), pages 2611-2615.
    3. Vaillancourt, Francois, 1987. "The Compliance Costs of Taxes on Businesses and Individuals: A Review of the Evidence," Public Finance = Finances publiques, , vol. 42(3), pages 395-414.
    4. John J. Wallis & Douglass North, 1986. "Measuring the Transaction Sector in the American Economy, 1870-1970," NBER Chapters, in: Long-Term Factors in American Economic Growth, pages 95-162, National Bureau of Economic Research, Inc.
    5. Jan Pavel & Emilia Sičáková-Beblavá, 2009. "Testing the Validity of the Brown-Potoski Model in the Czech and Slovak Republics," Prague Economic Papers, Prague University of Economics and Business, vol. 2009(4), pages 327-341.
    6. Pina, Vicente & Torres, Lourdes, 2001. "Analysis of the efficiency of local government services delivery. An application to urban public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(10), pages 929-944, December.
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    More about this item

    Keywords

    Czech Republic; public procurement; transaction costs;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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