Bid Preference Programs and Participation in Highway Procurement Auctions

• 成果类型: Article
• 署名作者: Krasnokutskaya, Elena; Seim, Katja
• 署名单位: Johns Hopkins University; University of Pennsylvania
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.101.6.2653
• 发表日期: 2011
• 页码: 2653-2686
• 关键词: AFFIRMATIVE-ACTION; 1st-price auctions; winners curse; entry; COMPETITION; identification; cost

摘要

We use data from highway procurement auctions subject to California's Small Business Preference program to study the effect of bid preferences on auction outcomes. Our analysis is based on an estimated model of firms' bidding and participation decisions, which allows us to evaluate the effects of current and alternative policy designs. We show that incorporating participation responses significantly alters the assessment of preferential treatment policies. (JEL D44, H76, R42)