@techreport{78e45bf63a0a46a09abd78a8baa4e3ad,
title = "On the Competitive Effects of Screening in Procurement",
abstract = "Procuring authorities frequently use screening in order to mitigate risky bids. This study estimates the effect of bid screening and litigation on entry and bidding using a unique data set on highway construction procurement auctions in Poland. The market exhibits a screening method that ex post selects eligible offers. We demonstrate with an empirical model that this method disproportionately affects small firms and creates a barrier to entry. Our results suggest that screening increases bids by two channels. First, it directly inflates bids as well as decreasing entry. Second, in a competitive market, lower entry also inflates bids and prices.",
keywords = "procurement, auctions, market design, litigation",
author = "G. Seres and Adam Pigon",
note = "TILEC Discussion Paper Nr. 2019-009",
year = "2019",
month = may,
day = "14",
language = "English",
volume = "2019-009",
series = "TILEC Discussion Paper",
publisher = "TILEC",
type = "WorkingPaper",
institution = "TILEC",
}