Collusion risk in corporate networks.

ABSTRACT: Collusion among economic operators increases prices, reduces product quality, and hinders innovation. Structural links can affect the incentive and ability of firms to behave competitively by facilitating collusion. We use a network-based approach to study the relationship between ownership links and bidding behavior in procurement markets. We build temporal multiplex networks based on firms' ownership and co-bidding ties to find network measures that may signal collusion risk. We test four network measures, two at market-level (density and average harmonic closeness centrality) and two at firm-level (degree centrality and harmonic closeness centrality). Using data on public procurement contracts awarded in Sweden from 2010 to 2015, we found higher incidence of single bidding in markets th

SUBMITTER: Villamil I 

PROVIDER: S-EPMC10850496 | biostudies-literature | 2024 Feb

REPOSITORIES: biostudies-literature