This note analyses investment and risk-taking in a simple agency model of public regulation/procurement borrowed from Laffont & Tirole (1993). We show that the principal will overinvest or underinvest depending on whether investment is marginally more productive in bad or in good states. Due to...

It was the best of times, it was the worst of times -- a year marked by genuine progress in public procurement law in some nations, and partial paralysis in others. This article presents the experience of Sweden (as part of the European Union), the United Kingdom (which is slated soon to depart...

This paper analyzes the problem of abnormally low tenders in the procurement process. Limited liability causes firms in a bad financial situation to bid more aggressively than good firms in the procurement auction. Therefore, it is more likely that the winning firm is a firm in financial...

In 2009, the Israeli Government initiated a comprehensive reform of its tendering regulations with the objective of streamlining and modernizing the procedures, adapting them to technological advances, and decentralizing authority in relation to choice of procurement method and the granting of...

This paper empirically investigates the impact of public procurement regulation quality on competition and cost-effectiveness. I employ the World Bank's Benchmarking Public Procurement quality scores. Using extensive data about public procurement in the European Economic Area, Switzerland, and...

Appropriately designed Product Market Regulation (PMR) is essential to enhance productivity, boost economic growth and increase welfare. Regulation is needed to address market failures and guarantee the health and safety of consumers. However, by limiting the entry and expansion of firms, a too...

This paper considers the main consequences of public procurement reform in Russia in 2005-2006. Using data from two surveys of manufacturing enterprises we show that before the reform firms with government stakes, old firms (established before 1992) and larger firms had advantages in access to...

The procurement function is not well-placed to act as a two-sided gatekeeper and thus unable to effectively ‘regulate by contract’ the behaviour of the public entities seeking to adopt digital technologies and technology providers offering to deliver them. Additionally, given in-built...

The European Union has erected a significant new barrier to foreign competitors that seek to compete in EU Member State public procurements. In the European Union there are uniform rules (known as “State aid” rules) on subsidies for all Member States, which are intended to ensure that...