Joint Bidding in Infrastructure Procurement

To utilize public resources efficiently, it is required to take full advantage of competition in public procurement auctions. Joint bidding practices are one of the possible ways of facilitating auction competition. In theory, there are pros and co...

Full description

Bibliographic Details
Main Authors: Estache, Antonio, Iimi, Atsushi
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2008/07/9669893/joint-bidding-infrastructure-procurement-joint-bidding-infrastructure-procurement
http://hdl.handle.net/10986/6852
id okr-10986-6852
recordtype oai_dc
spelling okr-10986-68522021-04-23T14:02:32Z Joint Bidding in Infrastructure Procurement Estache, Antonio Iimi, Atsushi AFFILIATED ORGANIZATIONS AUCTION AUCTIONS BARRIERS TO ENTRY BID BID RIGGING BIDDERS BIDDING COLLABORATION COLLUSION COMPETITION POLICY COMPETITIVENESS CONTESTABILITY CONTRACTORS FOREIGN COMPANIES FOREIGN FIRMS INTERNATIONAL DEVELOPMENT INTERNATIONAL FIRMS JOINT VENTURES LABOR MARKETS MULTINATIONAL PARENT COMPANY PARTICIPATION RATES PRIVATE EQUITY PROCUREMENT PROCUREMENTS RISK SHARING TELECOMMUNICATIONS To utilize public resources efficiently, it is required to take full advantage of competition in public procurement auctions. Joint bidding practices are one of the possible ways of facilitating auction competition. In theory, there are pros and cons. It may enable firms to pool their financial and experiential resources and remove barriers to entry. On the other hand, it may reduce the degree of competition and can be used as a cover for collusive behavior. The paper empirically addresses whether joint bidding is pro- or anti-competitive in Official Development Assistance procurement auctions for infrastructure projects. It reveals the possible risk of relying too much on a foreign bidding coalition and may suggest the necessity of overseeing it. The data reveal no strong evidence that joint bidding practices are compatible with competition policy, except for a few cases. In road procurements, coalitional bidding involving both local and foreign firms has been found pro-competitive. In the water and sewage sector, local joint bidding may be useful to draw out better offers from potential contractors. Joint bidding composed of only foreign companies is mostly considered anti-competitive. 2012-06-01T15:14:34Z 2012-06-01T15:14:34Z 2008-07 http://documents.worldbank.org/curated/en/2008/07/9669893/joint-bidding-infrastructure-procurement-joint-bidding-infrastructure-procurement http://hdl.handle.net/10986/6852 English Policy Research Working Paper No. 4664 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AFFILIATED ORGANIZATIONS
AUCTION
AUCTIONS
BARRIERS TO ENTRY
BID
BID RIGGING
BIDDERS
BIDDING
COLLABORATION
COLLUSION
COMPETITION POLICY
COMPETITIVENESS
CONTESTABILITY
CONTRACTORS
FOREIGN COMPANIES
FOREIGN FIRMS
INTERNATIONAL DEVELOPMENT
INTERNATIONAL FIRMS
JOINT VENTURES
LABOR MARKETS
MULTINATIONAL
PARENT COMPANY
PARTICIPATION RATES
PRIVATE EQUITY
PROCUREMENT
PROCUREMENTS
RISK SHARING
TELECOMMUNICATIONS
spellingShingle AFFILIATED ORGANIZATIONS
AUCTION
AUCTIONS
BARRIERS TO ENTRY
BID
BID RIGGING
BIDDERS
BIDDING
COLLABORATION
COLLUSION
COMPETITION POLICY
COMPETITIVENESS
CONTESTABILITY
CONTRACTORS
FOREIGN COMPANIES
FOREIGN FIRMS
INTERNATIONAL DEVELOPMENT
INTERNATIONAL FIRMS
JOINT VENTURES
LABOR MARKETS
MULTINATIONAL
PARENT COMPANY
PARTICIPATION RATES
PRIVATE EQUITY
PROCUREMENT
PROCUREMENTS
RISK SHARING
TELECOMMUNICATIONS
Estache, Antonio
Iimi, Atsushi
Joint Bidding in Infrastructure Procurement
relation Policy Research Working Paper No. 4664
description To utilize public resources efficiently, it is required to take full advantage of competition in public procurement auctions. Joint bidding practices are one of the possible ways of facilitating auction competition. In theory, there are pros and cons. It may enable firms to pool their financial and experiential resources and remove barriers to entry. On the other hand, it may reduce the degree of competition and can be used as a cover for collusive behavior. The paper empirically addresses whether joint bidding is pro- or anti-competitive in Official Development Assistance procurement auctions for infrastructure projects. It reveals the possible risk of relying too much on a foreign bidding coalition and may suggest the necessity of overseeing it. The data reveal no strong evidence that joint bidding practices are compatible with competition policy, except for a few cases. In road procurements, coalitional bidding involving both local and foreign firms has been found pro-competitive. In the water and sewage sector, local joint bidding may be useful to draw out better offers from potential contractors. Joint bidding composed of only foreign companies is mostly considered anti-competitive.
format Publications & Research :: Policy Research Working Paper
author Estache, Antonio
Iimi, Atsushi
author_facet Estache, Antonio
Iimi, Atsushi
author_sort Estache, Antonio
title Joint Bidding in Infrastructure Procurement
title_short Joint Bidding in Infrastructure Procurement
title_full Joint Bidding in Infrastructure Procurement
title_fullStr Joint Bidding in Infrastructure Procurement
title_full_unstemmed Joint Bidding in Infrastructure Procurement
title_sort joint bidding in infrastructure procurement
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/07/9669893/joint-bidding-infrastructure-procurement-joint-bidding-infrastructure-procurement
http://hdl.handle.net/10986/6852
_version_ 1764400978911559680