U.S.A, New York: How to Diminish Collusion in Public Procurement Auctions? Impose a Price Floor, Economists Argue

17 Dec 2018: A pair of economists suggest a new way to alleviate the problem of collusion in public procurement auctions: establish price floors for the contracted work. Collusion between firms participating in public procurement costs taxpayers around the globe billions of dollars each year. The Organization for Economic Cooperation and Development (OECD) estimates that its member countries spend 12 percent of their GDP in public procurement, with a higher percentage in developing countries.