Gugler, Klaus, Weichselbaumer, Michael, Zulehner, Christine. 2015. Competition in the economic crisis: Analysis of procurement auctions. European Economic Review 73, 35-57.
BibTeX
Abstract
We study the effects of the recent economic crisis on firms׳ bidding behavior and markups in sealed bid auctions. Using data from Austrian construction procurements, we estimate bidders׳ construction costs within a private value auction model. We find that markups of all bids submitted decrease by 1.5 percentage points in the recent economic crisis, markups of winning bids decrease by 3.3 percentage points. We also find that without the government stimulus package this decrease would have been larger. These two pieces of evidence point to pro-cyclical markups.
Tags
Press 'enter' for creating the tagPublication's profile
Status of publication | Published |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | European Economic Review |
Citation Index | SSCI |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, VW-A, WH-B |
Language | English |
Title | Competition in the economic crisis: Analysis of procurement auctions |
Volume | 73 |
Year | 2015 |
Page from | 35 |
Page to | 57 |
Reviewed? | Y |
DOI | http://dx.doi.org/10.1016/j.euroecorev.2014.10.007 |
Associations
- People
- Gugler, Klaus (Details)
- Weichselbaumer, Michael (Details)
- External
- Zulehner, Christine (Goethe-Universität Frankfurt, Germany)
- Organization
- Research Institute for Regulatory Economics FI (Details)
- Department of Economics (Gugler) (Details)
- Research areas (ÖSTAT Classification 'Statistik Austria')
- 5370 Industrial economics (Details)