Analyzing Market Concentration in the Greek Public Procurement Market : A Network Theory Approach

This study uses network theory to analyze the structure and concentration of the Greek public procurement market, focusing on the relationships between Contracting Authorities (CAs) and Economic Bodies (EOs) within different Common Procurement Vocabulary (CPV) groups. By examining degree distribution curves and identifying dominant economic actors, we gain valuable insights into market dynamics and competition in Greece. Our findings reveal the presence of market concentration, where a few EOs receive a disproportionate share of contracts within certain CPV groups which suggests potential market dominance and lack of competition. In contrast, some CPV groups demonstrate a more balanced distribution of contracts among EOs, suggesting a healthier competitive environment. The analysis of degree distributions between sub-networks based on CPV groups highlights variations in market structures between sectors. These differences highlight the heterogeneity in the Greek public procurement market, highlighting the need for sector-specific policy interventions. Given that the concentration of contract awards raises competition, fairness and transparency concerns, the implications of our findings are important for policymakers, regulators and stakeholders involved in the Greek public procurement market. To address these issues, we recommend measures such as promoting transparency through enhanced data collection and dissemination, increasing competition within highly concentrated CPV groups, and strengthening enforcement and cooperation among stakeholders. While our study provides valuable information, limitations include variations in data availability and potential inaccuracies in recorded information. Future research should address these limitations and explore the effects of market concentration on CPV codes in greater depth. By implementing evidence-based strategies, policymakers can promote a more balanced and competitive procurement environment. Our study contributes to the public procurement literature and serves as a basis for further research and policy making in the Greek procurement sector