Bunching below thresholds to manipulate public procurement

Manipulative authorities can bunch tenders just below thresholds to implement noncompetitive procurement practices. I use regression discontinuity manipulation tests identify the bunching scheme. investigate European Union public data set that covers more than two million contracts. The results show 10–13% of examined exhibit a high probability bunching. These are less likely employ competitive procedures. Local firms win contracts from authority. same firm wins repeatedly is when an authority has probability. Empirical suggest policy makers effectively determine manipulative authorities.