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Methods of detecting bid rigging

December 2016

IKAR 2016 7(5)

The present article discusses the use of tools of economic analysis to detect bid rigging by taking a two-step approach. Firstly, the structural approach to identify markets that are more susceptible to bid rigging is presented.

Secondly, the behavioral approach consisting of identifying suspicious behavior in tenders is discussed. Within the latter approach, tools for the identifi cation of suspicious bid rigging patterns, price variance analysis and other tests used to study whether bidding behavior is more consistent with collusion rather than competition are analyzed.

Finally, the extent to which tools of economic analysis could be used in practice by competition authorities in detecting bid rigging behavior is commented.

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