Title: Corruption in delegated public procurement auctions
Abstract: In this paper we theoretically analyse effects of corruption in public procurements within a scoring-auction framework. A corrupt politician, who acts on behalf of the public sector, receives a kickback from the winning bidder. The politician selects the scoring rule. The paper shows that such corruption always leads to lower quality and lower price. Given a level of corruption, a higher bargaining power of the politician in extracting bribes does not affect the quality but leads to higher price.
Publication Year: 2014
Publication Date: 2014-09-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 37
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