IDEAS home Printed from https://ideas.repec.org/p/sps/wpaper/1447.html
   My bibliography  Save this paper

Corruption in Public Procurement: efficient and quasi-efficient

Author

Listed:
  • Ivanov, Andrei E.

Abstract

In the public procurement legislation of the Russian Federation auctions are considered to be the primary procurement method. Having originally introduced live outcry auctions, the Russian authorities were forced to replace them with e-auctions due to many cases of collusion. However first results of applying of e-auctions unexpectedly revealed a significant reduction in the competition in the auctions. The paper argues that this reduction cannot be explained only by corruptive behavior of the mala fide contracting authority trying to limit the competition in the favor of the selected supplier for kickbacks. The paper treats the hypothesis of buyer's quasi-corruptive behavior: the bona fide contracting authority is trying to limit the competition in the favor of the selected supplier too but for avoiding the risks which items from the applying English auction for purchasing of the differentiated goods.

Suggested Citation

  • Ivanov, Andrei E., 2013. "Corruption in Public Procurement: efficient and quasi-efficient," Working Papers 1447, Graduate School of Management, St. Petersburg State University.
    • Handle: RePEc:sps:wpaper:1447
    as

    Download full text from publisher

    File URL: https://dspace.spbu.ru/handle/11701/1447
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
    2. Beck, Paul J. & Maher, Michael W., 1986. "A comparison of bribery and bidding in thin markets," Economics Letters, Elsevier, vol. 20(1), pages 1-5.
    3. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
    4. Toke S. Aidt, 2003. "Economic analysis of corruption: a survey," Economic Journal, Royal Economic Society, vol. 113(491), pages 632-652, November.
    5. Arvind K. Jain, 2001. "Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
    6. Dimitri,Nicola & Piga,Gustavo & Spagnolo,Giancarlo (ed.), 2006. "Handbook of Procurement," Cambridge Books, Cambridge University Press, number 9780521870733, September.
    7. Andrey Ivanov, 2013. "Corruption in Public Procurement: efficient and quasi-efficient," OBEGEF Working Papers 026, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
    8. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-781, August.
    9. McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
    10. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    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. Andrey Ivanov, 2013. "Corruption in Public Procurement: efficient and quasi-efficient," OBEGEF Working Papers 026, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
    2. Pavlova, Natalia (Павлова, Наталья) & Meleshkina, Anna (Мелешкина, Анна), 2017. "Anti-Corruption and Protection of Competition [Противодействие Коррупции И Защита Конкуренции]," Working Papers 041707, Russian Presidential Academy of National Economy and Public Administration.

    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. Andrey Ivanov, 2013. "Corruption in Public Procurement: efficient and quasi-efficient," OBEGEF Working Papers 026, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
    2. Ivanov, A. & Maslova, S., 2014. "Applying modelling in the process of anti-corruption expertise of legal regulation of public procurement," Working Papers 6382, Graduate School of Management, St. Petersburg State University.
    3. Ivanov, A., 2015. "How to improve effectiveness of anti-corruption expertise: Public procurement case," Working Papers 6433, Graduate School of Management, St. Petersburg State University.
    4. Amadou Amadou Boly & Kole Keita & Assi Okara & Guei Guei C. Okou, 2021. "Effect of corruption on educational quantity and quality : theory and evidence," CERDI Working papers hal-03194726, HAL.
    5. Maurizio Lisciandra & Emanuele Millemaci, 2017. "The economic effect of corruption in Italy: a regional panel analysis," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1387-1398, September.
    6. Qing Liu & Ruosi Lu & Xiangjun Ma, 2015. "Corruption, Financial Resources and Exports," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 1023-1043, November.
    7. Andrei Ivanov, 2015. "Applying modelling in the process of anticorruption expertise of legal regulation of public procurement," OBEGEF Working Papers 041, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
    8. Ferris, Stephen P. & Hanousek, Jan & Tresl, Jiri, 2021. "Corporate profitability and the global persistence of corruption," Journal of Corporate Finance, Elsevier, vol. 66(C).
    9. Hainz, Christa & Boerner, Kira, 2005. "The Political Economy of Corruption and and the Role of Financial Institutions," Proceedings of the German Development Economics Conference, Kiel 2005 6, Verein für Socialpolitik, Research Committee Development Economics.
    10. Börner, Kira & Hainz, Christa, 2004. "The Political Economy of Corruption and the Role of Financial Institutions," Discussion Papers in Economics 411, University of Munich, Department of Economics.
    11. Seung Han Yoo, 2014. "Competition, Corruption and Institutional Design," Discussion Paper Series 1406, Institute of Economic Research, Korea University.
    12. Buia, Raluca E. & Molinari, M. Cristina, 2012. "Corruption and positive selection in privatization," Research in Economics, Elsevier, vol. 66(4), pages 297-304.
    13. Di Guardo, Maria Chiara & Marrocu, Emanuela & Paci, Raffaele, 2016. "The effect of local corruption on ownership strategy in cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 69(10), pages 4225-4241.
    14. Yan Leung Cheung & P. Raghavendra Rau & Aris Stouraitis, 2012. "How much do firms pay as bribes and what benefits do they get? Evidence from corruption cases worldwide," NBER Working Papers 17981, National Bureau of Economic Research, Inc.
    15. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
    16. M. Molinari, 2014. "A Second Best Theory of Institutional Quality," Public Organization Review, Springer, vol. 14(4), pages 545-559, December.
    17. Shuanglin Lin & Wei Zhang, 2009. "The effect of corruption on capital accumulation," Journal of Economics, Springer, vol. 97(1), pages 67-93, May.
    18. Toke S. Aidt, 2016. "Rent seeking and the economics of corruption," Constitutional Political Economy, Springer, vol. 27(2), pages 142-157, June.
    19. Yuan Wang, 2022. "Uncertainty, entrepreneurship, and the organization of corruption," Small Business Economics, Springer, vol. 58(1), pages 121-139, January.
    20. Nobuo Akai & Yusaku Horiuchi & Masayo Sakata, 2005. "Short-run and Long-run Effects of Corruption on Economic Growth: Evidence from State-Level Cross-Section Data for the United States," International and Development Economics Working Papers idec05-5, International and Development Economics.

    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:sps:wpaper:1447. 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: Lena Manaeva (email available below). General contact details of provider: https://edirc.repec.org/data/sompuru.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.