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  3. American Economic Review
  4. October 2011
  5. Bid Preference Programs and Participation in Highway Procurement Auctions

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Bid Preference Programs and Participation in Highway Procurement Auctions

  • Elena Krasnokutskaya
  • Katja Seim
American Economic Review
vol. 101, no. 6, October 2011
(pp. 2653–86)
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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. (JEL D44, H76, R42)

Citation

Krasnokutskaya, Elena, and Katja Seim. 2011. "Bid Preference Programs and Participation in Highway Procurement Auctions." American Economic Review, 101 (6): 2653–86. DOI: 10.1257/aer.101.6.2653

Additional Materials

JEL Classification

  • D44 Auctions
  • H76 State and Local Government: Other Expenditure Categories
  • R42 Transportation Systems: Government and Private Investment Analysis; Road Maintenance, Transportation Planning