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Detection of Collusive Networks in E-procurement

Author

Listed:
  • Bruno Baranek
  • L. Musolff
  • Vitezslav Titl

Abstract

Collusion likely has adverse effects on social welfare. In this paper, we study collusion in the e-procurement market in Ukraine. We document that the bidding patterns in the data are incompatible with a competitive equilibrium. We develop a novel structural test to detect pairs and, thereby, networks of collusive firms. We validate the soundness of our collusion detection algorithm on a sample of 863 prosecuted collusive firms that participated in 23,515 tenders.

Suggested Citation

  • Bruno Baranek & L. Musolff & Vitezslav Titl, 2021. "Detection of Collusive Networks in E-procurement," Working Papers 2111, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:2111
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    References listed on IDEAS

    as
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    11. Sylvain Chassang & Juan Ortner, 2019. "Collusion in Auctions with Constrained Bids: Theory and Evidence from Public Procurement," Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 2269-2300.
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    Keywords

    Public procurement; Collusion; Online markets;
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