Public Procurement in Collusive Institutional Settings

Paola Valbonesi (Univ. of Padova)
Riccardo Camboni (Univ. of Padova)
Elena Podkolzina (HSE - Moscow)
Koen Shoors (Univ. of Gent)
Sumeyra Atmaca (Univ. of Gent)

Abstract : We investigate a theoretical model that studies under which conditions reserve price underpricing represents a collusive equilibrium between pairs of buyer-supplier. We then provide empirical evidence of the adoption of this collusive strategy on the Russian public procurement for gasoline.