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Synergies in Recurring Procurement Auctions: An Empirical Investigation

Research output: Contribution to journalJournal article

<mark>Journal publication date</mark>01/2005
<mark>Journal</mark>Economic Inquiry
Issue number1
Number of pages12
Pages (from-to)55-66
Publication statusPublished
Original languageEnglish


This article examines the impact of synergies on bidder behavior in recurring road construction procurement auctions. The study reveals that projects are spatially correlated. When bidders with potential synergies participate, the results indicate that their probability of bidding and winning increases and they bid more aggressively. Finally, the study shows that a firm that is capacity unconstrained will bid more aggressively than one that is capacity constrained.