Favoritism in Russian public procurement: does e-auction format matter? (Center for Institutional Studies Research Seminar)

Speakers: Maria Ostrovnaya (Center for Institutional Studies), Elena Podkolzina (Center for Institutional Studies)

Speakers: Maria Ostrovnaya (Center for Institutional Studies), Elena Podkolzina (Center for Institutional Studies)

June 19, Thursday, Maysnitskaya 24, building 3, room 424, 18.30. 

Favoritism is a wide-spread problem in Russia, especially in public procurement. In order to decrease prices and to struggle favoritism the government introduced e-auctions. Eauctions are treated as a way to raise competition through increased transparency and lower participation costs. However there is still lack of evidence of their effectiveness. This project examines how auction format (traditional oral auction or e-auction) influences favoritism in Russian public procurement. We built a theoretical model that investigates the impact of intermediary and participation costs on public spending and social welfare. This project contributes to the current corruption literature and literature on public procurement.

Working paper: download