2021
DOI: 10.1155/2021/9913413
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Deterrence of Punitive Measures on Collusive Bidding in the Construction Sector

Abstract: Collusive bidding has been a deep-seated issue in the construction market for a long time. The strategies implemented by bid riggers are deliberate, interactive, and complex, suggesting that antitrust authorities have difficulty preventing collusive behaviors. Based on game payoff matrixes, this study proposes a system dynamics (SD) model to present the deterrence of punitive measures, namely the certainty of punishment (CoP) and the severity of punishment (SoP), on regular bidders’ to-collude decision-making.… Show more

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Cited by 13 publications
(6 citation statements)
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“…Therefore, local governments should take the local market environment and project types into consideration and reasonably regulate the competition level of projects for different project types to control the collusion phenomenon. Furthermore, the government's guiding role should be fully exerted to realize the synergistic control of internal and external environments [43][44][45].…”
Section: Plos Onementioning
confidence: 99%
“…Therefore, local governments should take the local market environment and project types into consideration and reasonably regulate the competition level of projects for different project types to control the collusion phenomenon. Furthermore, the government's guiding role should be fully exerted to realize the synergistic control of internal and external environments [43][44][45].…”
Section: Plos Onementioning
confidence: 99%
“…Traditional production systems in the construction industry have long been associated with ecological imbalances and social hurdles [7]. Environmental degradation, pollution, social inequality, collusive bidding, and corruption are traceable to traditional production systems and technologies [8][9][10]. Grounded in legitimacy theory, meeting the expectations and requirements of diverse stakeholders-such as carbon emission reductions-is recognized as a catalyst for superior organizational performance [11].…”
Section: Introductionmentioning
confidence: 99%
“…The construction industry is famous for its destructive impact on the environment (Hu et al, 2018), unfair business practices (Son et al, 2019;Zhu et al, 2021), and adversarial and unsafe work environments (Xia et al, 2018;Zhang et al, 2018b). With the increasing awareness of and concern about its environmental and societal impacts, there is a strong push among academics and business circles that construction firms should be more socially responsible for their business activities.…”
Section: Introductionmentioning
confidence: 99%
“…, 2018), unfair business practices (Son et al. , 2019; Zhu et al. , 2021), and adversarial and unsafe work environments (Xia et al.…”
Section: Introductionmentioning
confidence: 99%