Snow removal auctions in Montreal: costs, informational rents, and procurement management

Véronique Flambard, Pierre Lasserre and Pierre Mohnen

Canadian Journal of Economics/Revue canadienne d'économique, 2007, vol. 40, issue 1, 245-277

Abstract: Abstract. Using semi‐parametric and non‐parametric estimation techniques, we infer cost distributions and informational rents from 457 bids for snow removal contracts offered for tender by the City of Montreal between 1990 and 1998. Bids and costs have decreased over the sample period, while rents remained relatively constant. The City deserves credit for these results, as it has succeeded in exploiting economies of scale and triggering innovations while maintaining competition. Further, it has been successful in adjusting its reserve prices to keep up with the decreasing cost of snow removal. En utilisant des techniques d'estimation nonparamétriques et semiparamétriques, nous inférons les distributions des coûts et les rentes informationnelles à partir de 457 prix soumis aux appels d'offres, organisés par la ville de Montréal entre 1990 et 1998. Les prix soumis et les coûts ont diminué sur la période de notre échantillon alors que les rentes se sont maintenues. La ville a eu le mérite d'exploiter des économies d'échelle et d'induire des innovations tout en préservant la concurrence. De plus, elle a réduit les prix de retrait pour suivre la tendance baissière des coûts.

Date: 2007
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Citations: View citations in EconPapers (3)

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https://doi.org/10.1111/j.1365-2966.2007.00407.x

Related works:
Journal Article: Snow removal auctions in Montreal: costs, informational rents, and procurement management (2007)
Working Paper: Snow Removal Auctions in Montreal: Costs, Informational Rents, and Procurement Management (2007)
Working Paper: Snow removal auctions in Montreal: costs, informational rents, and procurement management (2007)
Working Paper: Snow Removal Auctions in Montreal: Costs, Informational Rents, and Procurement Management (2004)
Working Paper: Snow Removal Auctions in Montreal: Costs, Informational Rents, and Procurement Management (2004)
Working Paper: Snow Removal Auctions in Montreal: Costs, Informational Rents, and Procurement Management (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:40:y:2007:i:1:p:245-277

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