HIGH AND LOW BIDS IN TENDERS: STRATEGIC PRICING AND OTHER BIDDING BEHAVIOUR IN PUBLIC TENDERS OF PASSENGER RAILWAY SERVICES

Gunnar ALEXANDERSSON and Staffan HULTÉN

Annals of Public and Cooperative Economics, 2007, vol. 78, issue 2, pages 161-194

Abstract: An important component in the deregulation of the public sector in the European Union is public procurement of services and products. This article studies the bidding behaviour of firms participating in public tenders of passenger railway services in Sweden. In a theoretical part of the article we discuss the various possible reasons behind high and low bids in tenders, linked to a discussion on pricing strategies and continuous and discontinuous economies of scale regarding costs of production. Detailed data on bids and bidders in Swedish tenders of railway services are then analyzed. 37 tenders taking place between 1989 and 2005 are included. Copyright 2007 The Authors Journal compilation © CIRIEC 2007.

Downloads: (external link)
http://www.blackwell ... &year=2007&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1370-4788

Access Statistics for this article

Annals of Public and Cooperative Economics is edited by Fabienne Fecher

More articles in Annals of Public and Cooperative Economics from Blackwell Publishing
Series data maintained by Christopher F. Baum ().