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Discration and Supplier Selection in Public Procurement

Audinga Beltrunaite, Cristina Giorgiantonio, Sauro Mocetti and Tommaso Orlando
Authors registered in the RePEc Author Service: Audinga Baltrunaite

No 122, Working Papers from "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi

Abstract: Public procurement outcomes depend on the ability of the procuring agency to select well-performing suppliers. Should public administrations be granted more or less discretion in their decision making? Using Italian data on municipal public works tendered in the period 2009-2013, we study how a reform extending the scope of bureaucrat discretion affects supplier selection. We find that the share of contracts awarded to politically connected firms increases while the (ex-ante) labor productivity of the winning firm decreases, thus suggesting a potential misallocation of the public funds. These effects are concentrated among lower quality procuring agencies.

Keywords: discretion; supplier selection; public procurement; transparency; corruption (search for similar items in EconPapers)
Pages: 37 pages
Date: 2018-06
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Related works:
Journal Article: Discretion and Supplier Selection in Public Procurement (2021) Downloads
Working Paper: Discretion and supplier selection in public procurement (2018) Downloads
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