Procurement procedure, competition and the final unit price: the case of commodities
| Author(s): | PhDr. Ing. Jiří Skuhrovec PhD., PhDr. Jan Soudek , |
|---|---|
| Type: | Articles in refereed journals |
| Year: | 2015 |
| Number: | 0 |
| ISSN / ISBN: | |
| Published in: | Journal of Public Procurement |
| Publishing place: | |
| Keywords: | public procurement, electronic auction, competition, energy markets |
| JEL codes: | H57, D23, D73, C21 |
| Suggested Citation: | |
| Abstract: | We show how institutional and procedural characteristics affect the final price in public procurement. In order to get comparable unit prices, only public procurement of homogeneous goods is analyzed. We examine two Czech commodity markets: electricity and natural gas. This enables us to use a private market price as a benchmark metric. On the dataset of 277 tenders we find that the final unit price of the procurement is sensitive to movements in both commodity market price and price estimated ex ante by the procurer. Moreover, we identify that the final price is reduced when procurer use an open procedure, an electronic auction or attract more competitors. |
