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Bid Rigging in the Public Procurement

Publication at Faculty of Social Sciences |
2013

Abstract

The paper analyzes the problems of bid rigging (the agreed tender). The bid rigging arises when the competitors secretly agree on the fact that they do not compete and take advantage of this superiority to their advantage (e.g. increase costs).

The following cases may arise: cover bidding, bid suppression, bid rotation and the market allocation. The contribution of the paper is in the illustrative description of an economic cover bidding, bid suppression, bid rotation and rotation.

The author presents a theoretical and a practical recommendations for the elimination of the bid rigging. The recommendations can be used to enhance the transparency and resilience of the system of the public procurement corruption and increasing of the economic efficiency of the public procurement in the Czech Republic.