The Chilean injectables cartel: detection of collusion in public procurement

Méndez Fernández, Daniel; Saiz Contreras, Noelia

The Chilean injectables cartel: detection of collusion in public procurement

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Méndez Fernández, D, Saiz Contreras, N. The Chilean injectables cartel: detection of collusion in public procurement. 2022. handle: http://hdl.handle.net/10230/56380

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Abstract

This paper looks at the effectiveness of recently developed safe-tests for the detection of collusion in public procurement. We discuss the prevalence and consequences of collusion in public procurement, as well as the limitations of existing detection methods. We then inspect the new methodologies proposed by Kawai which uses backlog and incumbency status indicators to identify bid patterns that are indicative of collusion. Finally, we demonstrate the methodology's effectiveness by applying it to a Chilean cartel. Our results suggest that safe-tests like the one presented can be useful to detect collusion, making it a valuable tool for combating it.