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Efficacy of a Bidder Training Program: Lessons from LINC

Author

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  • De Silva, Dakshina G.
  • Hubbard, Timothy P.
  • Kosmopoulou, Georgia

Abstract

In an effort to accommodate a change in the U.S. Federal Highway Administration's goals towards "race-neutral methods" concerning the involvement of Disadvantaged Business Enterprises in procurement contracting, the Texas Department of Transportation created a Learning, Information, Networking and Collaboration (LINC) bidder training program. We examine the costs, benefits, and efficacy of this program using ten years of data, leveraging firm-specific bidding patterns with participation dates. We study participation, entry and bidding patterns of LINC-trained relative to untrained firms. We also analyze market power effects and the survival rates of LINC graduates.

Suggested Citation

  • De Silva, Dakshina G. & Hubbard, Timothy P. & Kosmopoulou, Georgia, 2013. "Efficacy of a Bidder Training Program: Lessons from LINC," MPRA Paper 51329, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51329
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    References listed on IDEAS

    as
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    5. De Silva, Dakshina G. & Dunne, Timothy & Kosmopoulou, Georgia & Lamarche, Carlos, 2012. "Disadvantaged business enterprise goals in government procurement contracting: An analysis of bidding behavior and costs," International Journal of Industrial Organization, Elsevier, vol. 30(4), pages 377-388.
    6. De Silva, Dakshina G. & Kosmopoulou, Georgia & Lamarche, Carlos, 2009. "The effect of information on the bidding and survival of entrants in procurement auctions," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 56-72, February.
    7. Hickman Brent R. & Hubbard Timothy P. & Sağlam Yiğit, 2012. "Structural Econometric Methods in Auctions: A Guide to the Literature," Journal of Econometric Methods, De Gruyter, vol. 1(1), pages 67-106, August.
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    Cited by:

    1. Emmanuel Guerre & Yao Luo, 2019. "Nonparametric Identification of First-Price Auction with Unobserved Competition: A Density Discontinuity Framework," Papers 1908.05476, arXiv.org, revised Jan 2022.
    2. Timothy P. Hubbard & Rene Kirkegaard, 2015. "Asymmetric Auctions with More Than Two Bidders," Working Papers 1502, University of Guelph, Department of Economics and Finance.
    3. Benjamin V Rosa, 2024. "Subcontracting requirements and the cost of government procurement," RAND Journal of Economics, RAND Corporation, vol. 55(1), pages 3-32, March.

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    More about this item

    Keywords

    Auctions; bidder training; disadvantaged business enterprises;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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