Template-type: ReDif-Paper 1.0
Author-Name: Flambard,Véronique
Author-Name: Lasserre,Pierre 
Author-Name: Mohnen ,Pierre 
Author-workplace-name: MERIT
Title: Snow Removal Auctions in Montreal: Costs, Informational Rents, and Procurement Management
Abstract: Using semiparametric and nonparametric estimation techniques we infer cost distributions and informational rents from 457 snow removal contracts o¤ered for tender by the City of Montreal. Our results are compatible with standard received theory of competitive auctions: there is a positive correlation between costs and bids, and rents increase with the variance of costs. Bids and costs have decreased over the sample period while rents remained relatively constant. The City deserves credit for these results, as it has succeeded in exploiting economies of scale and triggering innovations while maintaining competition. Further, it has been successful in adjusting its reserve prices to keep up with the decreasing cost of snow removal.
Keywords: microeconomics ; 
Series: Research Memoranda
Creation-Date: 2004
Number: 023
File-URL: http://arnop.unimaas.nl/show.cgi?fid=952
File-Format: application/pdf
File-Size: 348024
Handle: RePEc:unm:umamer:2004023