Date of this Version
American Economic Review, The
We use data from highway procurement auction 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 siginificantly alters the assessment of preferential treatment policies.
Copyright © 2011 The American Economic Association.
Krasnokutskaya, E., & Seim, K. (2011). Bid Preference Programs and Participation in Highway Procurement Auctions. American Economic Review, The, 101 (6), 2653-2686. http://dx.doi.org/10.1257/aer.101.6.2653
Date Posted: 15 June 2018
This document has been peer reviewed.