Public Procurement Auctions and Competition in Turkey

Onur, İlke; Özcan, Rasim; Taş, Bedri Kamil Onur

doi:10.1007/s11151-011-9299-3

Cited by 55 publications

(42 citation statements)

References 12 publications

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“…al. 2016;Nipun & Kwan, 2017;Onur et al 2012;Kuhlman & Johnson, 1983). A similar study with the same result on the final cost of public procurement can also be found at (Gilley & Karels, 1981;Gupta, 2002;Rose, 2016;Gómez-Lobo & Szymanski, 2001).…”

Section: Introductionsupporting

confidence: 53%

Public procurement efficiency in agriculture and forestry in Slovakia

Gavurová¹,

Tuček²,

Tkáčová³

et al. 2018

AMP

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Agriculture and forestry in Slovakia is a sector that includes the highest number of contract awards in public procurement. The main aim of this article is to identify an influence of selected determinants on public procurement efficiency in agricultural and forestry sector in Slovakia. There are created two basic types of models based on a sample of 291 contracts, which were formed by means of a multiple linear regression in program R. The first model examines an influence of variables on public procurement savings that is defined as a rate of the final and probable price of the contract. This model confirms a positive influence of a number of offers on savings' formation, where each next offer increases saving of approximately 8.816 %. On the other hand, a subcontractor's presence reduces saving by 19.9 %. The second model examines and influence of variables on a number of offers in public procurement. The number of offers in a given sector positively influences a public competition, while there is usually of three offers more than in the negotiating process. However, the number of offers decreases when a contract is financing from the EU funds and when contract specifies a criterion of quality.

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Section: Introductionsupporting

confidence: 53%

Public procurement efficiency in agriculture and forestry in Slovakia

Gavurová¹,

Tuček²,

Tkáčová³

et al. 2018

AMP

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“…As a result of this effort, a growing body of literature deals with the adoption of e-auction implementations in the public procurement and examines its effects on the auction prices. In this context, Onur et al (2012) examine the effectiveness of the auctions that are organized by the public procurement authority in Turkey. They conclude that allowing foreign participants to participate in the auction and the threshold value for conducting an auction have notable effects on the number of bidders and the auction price.…”

Section: E-auction Studies With the Public Sector Datasetsmentioning

confidence: 99%

An empirical analysis of the main drivers affecting the buyer surplus in E-auctions

Karabağ

Tan

2018

International Journal of Production Research

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We empirically examine the impacts of the product category, the auction format, the 2008 global financial crisis, the group purchasing, the contract type, the platform ownership, and the number of participating suppliers on the buyer surplus obtained from e-auctions. To this end, we collect a unique dataset from a purchasing organization that offers e-auction solutions to its corporate customers. By using a standard Tobit model, we show that the product categories, the auction type, and the number of participating suppliers have significant effects on the decrease in the procurement prices with respect to the minimum of the initial submitted bids. It is observed that the 2008 global financial crisis led to an increase in the buyer surplus. We classify the product categories into three groups based on their impacts on the average of the decrease in the procurement prices. We show that the average decrease in procurement prices is higher for the group purchasing option than for the individual buying option. It is concluded that the types of contract between buyers and auctioneer and the platform ownership have no statistically significant effects on the average decrease in procurement prices.

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“…Empirical research on data from the auctioning of food purchased by US Department of Agriculture shows decline of the lowest bid of 4,2 to 8,3 % depending on commodity between auctions with one and two participants; the effect is weaker with additional participants (MacDonald, Handy, Plato, 2002). Onur, Ozcan and Tas (2012) report in the study of data on public contracts awarded in Turkey in 2004-2006 that presence of another tenderer causes the contract price decline by about 3,9 % relatively to estimated value of public contract. The authors also highlight that the opening of public procurement to foreign competition leads to decline the price of approximately 11 %.…”

Section: Empirical Verification Of the Conclusion Of The Modelmentioning

confidence: 99%

“…Game theory is also applied in several economic articles to the field of public procurement. The theory of auctions, which is a part or the game theory, is used in order to theoretically explain the influence of number of tenders on the bid price by for instance Gilley, Karels (1981), Gómez-Lobo, Szymanski (2001), Iimi (2006), Eustache, Iimi (2008) or Onur, Ozcan, Tas (2012). Porter and Zona (1993) test occurrence of bid rigging with an auction model, similarly Bajari (2001).…”

Section: Introductionmentioning

confidence: 99%

Price Determination in Public Procurement: A Game Theory Approach

Schmidt¹

2015

EFAJ

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Abstract:The article examines mechanism of bid price determination in public procurement by individual tenderers. A game theory approach is used to analyse this process. Firstly, a simple model with two firms illustrates the influence of expected opponent's decision in bid price setting. Assumptions are released subsequently and a game theory based model describes price determination under assumption of expected profit maximization. It is shown that the bid price depends on the costs associated with the performance of the contract and the expected number of bidders. The relationship between the amount of the bid price and the number of bids is also confirmed on the findings of several empirical studies that are quoted.

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Public Procurement Auctions and Competition in Turkey

Cited by 55 publications

References 12 publications

Public procurement efficiency in agriculture and forestry in Slovakia

Public procurement efficiency in agriculture and forestry in Slovakia

An empirical analysis of the main drivers affecting the buyer surplus in E-auctions

Price Determination in Public Procurement: A Game Theory Approach

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