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The One and Only: Single-Bidding in Public Procurement

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  • Vitezslav Titl

Abstract

Approximately 42% of European public procurement contracts are awarded to a sole bidder. As this market represents about one-seventh of GDP in developed countries, any inefficiency is a first-order concern. This paper examines a Czech reform that prohibited awarding such single-bid contracts. Using a difference-in-differences approach, I find the reform reduced prices by 6.1% relative to estimated costs, with no evidence of quality reduction. Furthermore, I provide suggestive evidence that procuring authorities try to actively get more bidders and that the prices of procurement contracts supplied by politically connected and anonymously owned firms were not reduced after the reform.

Suggested Citation

  • Vitezslav Titl, 2025. "The One and Only: Single-Bidding in Public Procurement," CESifo Working Paper Series 11697, CESifo.
    • Handle: RePEc:ces:ceswps:_11697
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    References listed on IDEAS

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    1. Jeffrey B. Liebman & Neale Mahoney, 2017. "Do Expiring Budgets Lead to Wasteful Year-End Spending? Evidence from Federal Procurement," American Economic Review, American Economic Association, vol. 107(11), pages 3510-3549, November.
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    7. David Schoenherr, 2019. "Political Connections and Allocative Distortions," Journal of Finance, American Finance Association, vol. 74(2), pages 543-586, April.
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    More about this item

    Keywords

    single-bidding; public procurement; political connections; corruption;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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