Re-examining procurement tenders with respect to price: a transaction cost model of Portland procurement agencies Online publication date: Wed, 10-Sep-2014
by Adam M. Williams
International Journal of Procurement Management (IJPM), Vol. 7, No. 5, 2014
Abstract: Past research has provided a variety of model approaches which are intended for the use of detecting improprieties in the bidding process for public procurement auctions. Recent literature has moved beyond traditional bid price models and seeks to incorporate various non-price factors, such as vendor utility, into bid rigging modelling efforts. In response, the following research aims to incorporate specific non-price factors such as vendor distance to site, vehicles owned, etc., to demonstrate, while using transaction cost economic (TCE) theory, that these complex price models - hedonic price models - can incorporate non-price factors as a function of vendor price mechanisms. Future implications of hedonic techniques in procurement bidding analysis are also discussed with regard to their potential usefulness for detecting collusive behaviour. Data, which contains both bids accused of collusion and competitive bids, were collected and coded to include variables omitted from other OLS models. The hedonic model tested was found to improve upon modelling capabilities of standard OLS models creating possibilities for more extensive research into detailed price modelling focusing on bidding improprieties.
Online publication date: Wed, 10-Sep-2014
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Procurement Management (IJPM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com