Resident Bid Preference, Affiliation, and Procurement Competition: Evidence from New Mexico
研究了政府采购中给予本地企业的投标折扣优惠，发现企业成本之间存在关联性，并分析了这种关联性如何改变优惠拍卖的结果。
In public procurement auctions, governments routinely offer preferences to qualified firms in the form of bid discounts. Previous studies on bid discounting do not account for affiliation – a form of cost dependence between bidders that is likely to occur in a public procurement environment. Utilizing data from the New Mexico Department of Transportation’s Resident Preference Program, I develop and estimate an empirical model of firm bidding and entry that allows for affiliation in firms’ project costs. I find evidence of affiliation and show how it changes preference auction outcomes.