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Competition in London local bus tendering

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Under recurrent procurement, the awarding of a contract to a firm may put it in an advantageous position in future tenders, which may reduce competition over time. The paper first studies the dynamics of competition for tendered contracts, focusing on factors that may generate incumbent advantage. It then applies insights from that literature to analyse empirically the evolution of competition in the market for local bus services in London using a sample of repeated contracts for the same object.

This talk is part of the Economics & Policy Seminars, CJBS series.

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