International and European experience of avoiding corruption risks during public procurement

Corruption in public procurement Causes, consequences and cures

Competitive procurement with corruption

We study competitive procurement administered by a corrupt agent who is willing to manipulate his evaluation of contract proposals in exchange for bribes. With complete information and no corruption, the efficient firm will win the contract for sure. If the agent is corrupt and has large manipulation power, however, bribery makes it costly for the efficient firm to secure a sure win, so in equi...

Procurement Design with Corruption

This paper investigates the design of optimal procurement mechanisms in the presence of corruption. After the sponsor and the contractor sign the contract, the latter may bribe the inspector to misrepresent quality. Thus, the mechanism affects whether bribery occurs. I show how to include bribery as an additional constraint in the optimal-control problem that the sponsor solves, and characteriz...

Corruption and competition in procurement auctions

We investigate the effect of corruption on competition in procurement. Our assumption is that the bureaucrat (i.e., the agent that administers the market), if corrupt, may provide an opportunity for bid readjusments in exchange for a bribe. As firms expect to be paying a bribe, a mechanical effect of corruption is to increase the contract price by an amount corresponding to the anticipated brib...

Collusive market-sharing and corruption in procurement

This paper investigates links between corruption and collusion in procurement. A …rst-price multiple-object auction is administered by an agent who has legal discretion to allow for a readjustment of (all) submitted o¤ers before the o¢ cial opening. The agent may be corrupt, i.e. willing to “sell”his decision in exchange for a bribe. Our main result shows that the corrupt agent’s incentives to ...