Bid Preference Programs and Participation in Highway Procurement Auctions
Authors: Krasnokutskaya, Elena; Seim, Katja
Source: The American Economic Review, Volume 101, Number 6, October 2011 , pp. 2653-2686(34)
Publisher: American Economic Association
Abstract: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.
Document Type: Research Article
Publication date: 2011-10-01
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