Estimating and Analysing the Valuation and Bidding Patterns of Bidders in Procurement Auctions: The Case of Nhai Auctions in India

This paper attempts to study the valuations and bidding patterns of bidders in procurement auctions in developing countries. It estimates the valuation of bidders in Highway Authority auctions in India using the non linear parametic methods by Athey, Levin and Seira. It finds that the auctions are dominated by the larger national level firms and that they are able to secure the contracts at a price much smaller than their valuations. This points to the need for an auction mechanism to protect smaller scale firms to encourage competition in this industry and to keep improving the quality of products in the market.