Analysis of entrant and incumbent bidding in public procurement auctions

Bedri Kamil Onur Tas*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We empirically investigate differences in cost-effectiveness of public procurement auctions that are won by entrants and incumbents. We use a unique data set that covers all Turkish public procurement auctions for the years 2004 to 2010. We find that procurement prices of auctions won by entrants are significantly lower. More than half of the entrants cannot survive in the public procurement market and cannot win more than one auction. Our results indicate that policymakers should cultivate competition and promote entry in public procurement auctions.

Original languageEnglish
Pages (from-to)187-204
Number of pages18
Issue number2
Publication statusPublished - 2019
Externally publishedYes


  • Competition
  • Cost effectiveness
  • Entrants
  • Public procurement auctions
  • Survival

ASJC Scopus subject areas

  • Finance

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