Cartelization in the Automotive Industry and Bid Rigging in Procurement Auctions
Cartelization in the Automotive Industry and Bid Rigging in Procurement Auctions

Author: Johannes Gerhardt

Publisher: GRIN Verlag

Published: 2017-04-04

Total Pages: 84

ISBN-13: 3668428638

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Master's Thesis from the year 2016 in the subject Economics - Industrial Economics, grade: 1,3, Justus-Liebig-University Giessen, language: English, abstract: Due to the high importance of the automotive industry for the EU and the growing number of discovered automotive supplier cartels in this economic area, the purpose of the master thesis at hand is to analyze and display why cartelization – especially among automotive suppliers in the EU – is observed so frequently. Particularly, it investigates factors that facilitate collusion of car part manufacturers. Furthermore, it focuses on cartelization in procurement auctions as the touch point of automotive manufacturers and suppliers where collusive activities are executed. Hence, it examines the current state of theoretical research on collusive mechanism in auctions and provides implications for further research. Finally, it analyzes approaches to prevent collusion and assesses whether such measures are applicable to the automotive industry. The thesis is structured as follows: After this introduction, chapter two defines the scope of the industry for this paper and provides a broad overview of its different sectors and significant players. In addition, due to their overall importance for the following analysis, procurement and bidding processes in the automotive industry are exhibited upfront. To emphasize the industry’s importance for the EU, an outline of the state of this industry sector in the EEA is given. Building on that, chapter three presents a general introduction to cartelization in the automotive industry, followed by a presentation of three representative recent cartel cases in the EU: Car Glass, Automotive Bearings and Parking Heaters. This sets ground for a detailed analysis of the prevailing environment in the automotive industry. First, the analysis examines the manufacturer side including degrees of concentration, dominant strategies and effects of the automotive manufacturers’ market power. This is followed by an analysis of the supplier side regarding concentration and barriers to entry. Contingent on the analysis, factors that facilitate collusion in the automotive industry are summarized To introduce collusion in auctions, chapter four starts with an outline of the theoretical foundation of auction theory. Based on this, auction formats that foster collusion and stability of cartels are discussed. Furthermore, the most relevant incentive compatible mechanisms are introduced distinguishing between one-shot and repeated auction games.

Cartels, Competition and Public Procurement
Cartels, Competition and Public Procurement

Author: Stefan Weishaar

Publisher: Edward Elgar Publishing

Published: 2013-01-01

Total Pages: 343

ISBN-13: 0857936751

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ÔThis volume is long overdue. Integrated legal and economic analysis of competition law is crucial given the nature of the sector. However to carry this off successfully, one either needs intensive editorial work to bring different teams together; or one has to rely on the few who master both economic and legal analysis to a tee. Stefan WeishaarÕs analysis not only looks at a stubborn issue in competition law. He does so in three jurisdictions, in detailed yet clear fashion, with clear insight and ditto conclusions. Over and above its relevance to academic analysis, this book can go straight into competition authoritiesÕ decision making, and therefore also in compliance and remediation advice.Õ Ð Geert Van Calster, University of Leuven, Belgium Cartels, Competition and Public Procurement uses a law and economics approach to analyse whether competition and public procurement laws in Europe and Asia deal effectively with bid rigging conspiracies. Stefan Weishaar explores the ways in which economic theory can be used to mitigate the adverse effects of bid rigging cartels. The study sheds light on one of the vital issues for achieving cost-effective public procurement Ð which is itself a critical question in the context of the global financial crisis. The book comprehensively examines whether different laws deal effectively with bid rigging and the ways in which economic theory can be used to mitigate the adverse effects of such cartels. The employed industrial economics and auction theory highlights shortcomings of the law in all three jurisdictions Ð the European Union, China and Japan Ð and seeks to raise the awareness of policymakers as to when extra precautionary measures against bid rigging conspiracies should be taken. Students and researchers who have a keen interest in the relationship between law and economics, competition law and public procurement law will find this topical book invaluable. Practitioners can see how economic theory can be used to identify situations that lend themselves to bid rigging and policymakers will be informed about the shortcomings of existing legislation from a legal and economics perspective and will be inspired by approaches taken in different jurisdictions.

Combatting Corruption and Collusion in Public Procurement
Combatting Corruption and Collusion in Public Procurement

Author: Robert D. Anderson

Publisher: Oxford University Press

Published: 2024-03-06

Total Pages: 385

ISBN-13: 0192882996

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'Corruption' in public procurement typically involves procurement decisions taken in favour of preferred bidders in exchange for improper compensation (the acceptance of bribes, for example), while supplier collusion refers to a type of cartel activity, in which firms rig their bids in a tendering process. Although these practices are distinct, they frequently occur together in the public procurement context, reinforcing one another. Combatting Corruption and Collusion in Public Procurement: A Challenge for Governments Worldwide examines the causes of corruption and collusion in the public procurement sphere, its resulting harm, and how states can best try to combat these practices. This book provides a legal, economic, and practical analysis of issues concerning corruption and supplier collusion in public procurement, both generally and in seven diverse and representative jurisdictions: the United Kingdom, the United States, Brazil, Hungary and Poland, Ukraine, and Canada. It encompasses a discussion of both 'generic' cross-jurisdictional issues and specific proposals for individual jurisdictions. It offers practical guidance on building robust regimes for combatting corruption and collusion in public procurement and how to bolster and improve them when they are faltering. The book stresses the need for a multi-faceted and joined-up approach to the problems, emphasizing the importance both of enhanced investment in the effective enforcement of anti-corruption and cartel laws and of increasing the resilience of public procurement systems to corruption and collusion through a range of measures. The relevance of the topic to the social and economic well-being of citizens and the survival of democratic governance is highlighted throughout the book. Pioneering and comprehensive, Combatting Corruption and Collusion in Public Procurement provides a pathbreaking analysis of a range of global issues, making it an essential read for scholars, lawyers, government officials and representatives of international and non-governmental organizations around the world.

Handbook of Industrial Organization
Handbook of Industrial Organization

Author:

Publisher: Elsevier

Published: 2021-12-09

Total Pages: 784

ISBN-13: 0323988881

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Handbook of Industrial Organization Volume 4 highlights new advances in the field, with this new volume presenting interesting chapters. Each chapter is written by an international board of authors. - Part of the renowned Handbooks in Economics series - Chapters are contributed by some of the leading experts in their fields - A source, reference and teaching supplement for industrial organizations or industrial economists

Putting Auction Theory to Work
Putting Auction Theory to Work

Author: Paul Milgrom

Publisher: Cambridge University Press

Published: 2004-01-12

Total Pages: 378

ISBN-13: 1139449168

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This book provides a comprehensive introduction to modern auction theory and its important new applications. It is written by a leading economic theorist whose suggestions guided the creation of the new spectrum auction designs. Aimed at graduate students and professionals in economics, the book gives the most up-to-date treatments of both traditional theories of 'optimal auctions' and newer theories of multi-unit auctions and package auctions, and shows by example how these theories are used. The analysis explores the limitations of prominent older designs, such as the Vickrey auction design, and evaluates the practical responses to those limitations. It explores the tension between the traditional theory of auctions with a fixed set of bidders, in which the seller seeks to squeeze as much revenue as possible from the fixed set, and the theory of auctions with endogenous entry, in which bidder profits must be respected to encourage participation.

Electricity Auctions
Electricity Auctions

Author: Luiz Maurer

Publisher: World Bank Publications

Published: 2011-07-25

Total Pages: 181

ISBN-13: 082138824X

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Electricity-contract auctions have been getting increased attention as they have emerged as a successful mechanism to procure new generation capacity and. This book presents a comprehensive overview of international experiences in auction design and implementation.

Global Competition Enforcement
Global Competition Enforcement

Author: Paulo Burnier da Silveira

Publisher: Kluwer Law International B.V.

Published: 2019-10-17

Total Pages: 319

ISBN-13: 9403502126

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Global Competition Enforcement New Players, New Challenges Edited by Paulo Burnier da Silveira & William Evan Kovacic In a short span of years, the landscape of global competition has changed significantly. In particular, international cooperation in competition law enforcement has greatly strengthened the battle against abuse of dominance, cartels, anticompetitive mergers and related political corruption. This thoroughly researched book explains the current situation regarding joint investigations, identifies common problems and considers possible solutions and future developments. In addition to covering issues of competition policy, its authors look in detail at practice in both merger and conduct investigations in a variety of countries. The following aspects of the subject and more are examined in depth: the interface between antitrust and anti-corruption; the digital economy’s challenges to competition authorities; convergent aims and rules among different competition authorities; regional organizations with competition mandates; competition neutrality and state-owned enterprises; and leniency programmes. Although necessarily there is considerable information on major antitrust regimes like those of the United States and the European Union, chapters by local experts highlight lessons to be learned from the work of competition authorities in five continents including Argentina, Australia, Brazil, China, Colombia, India, Japan, Mauritius, Mexico, Peru and South Africa. The contributors include competition enforcers, regulators, academics, practitioners and leading commentators from a range of jurisdictions. Adding up to an authoritative analysis from the enforcer’s perspective, the studies presented in the book clarify the approaches and priorities of competition enforcement authorities – including those of major emerging economies – and provide expert guidance on dealing with transnational investigations. Antitrust lawyers, corporate counsel and interested academics as well as policymakers will benefit immeasurably from this book’s wealth of informative detail.

The International Handbook of Competition
The International Handbook of Competition

Author: Manfred Neumann

Publisher: Edward Elgar Publishing

Published: 2013-01-01

Total Pages: 431

ISBN-13: 1849806063

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ÔThis comprehensive Handbook demonstrates that academic thinking, new and old, has a role to play in shaping modern competition policy.Õ Ð Gunnar Niels, Oxera This indispensable Handbook examines the interface of competition policy, competition law and industrial economics. The book aims to further our understanding of how economic reasoning and legal expertise complement each other in defining the fundamental issues and principles in competition policy. In specially commissioned chapters the book provides a scholarly review of economic theory, empirical evidence and standards of legal evaluation with respect to monopolization of markets, exploitation of market power and mergers, among other issues. The International Handbook of Competition Ð Second Edition will be accessible to a wide audience including students of economics and law, public administrators, lawyers, consultants, and business executives.

A Commissioner’s Primer to Economics of Competition Law in India
A Commissioner’s Primer to Economics of Competition Law in India

Author: Geeta Gouri

Publisher: Springer Nature

Published: 2023-03-01

Total Pages: 258

ISBN-13: 9811994765

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This book is a primer on economics of competition law by a Commissioner based on cases of the Competition Commission of India (CCI). It presents economic theories in lucid ways while providing an in depth economic analysis of the cases dealt by CCI and in the process, it blends the diversity of responses by including the orders upheld by majority and minority. In essence. It is a unique work that addresses the gap between competition law and economics.