Marketing Papers

Document Type

Technical Report

Date of this Version

10-2011

Publication Source

American Economic Review, The

Volume

101

Issue

6

Start Page

2653

Last Page

2686

DOI

10.1257/aer.101.6.2653

Abstract

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/Permission Statement

Copyright © 2011 The American Economic Association.

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Date Posted: 15 June 2018

This document has been peer reviewed.