The OECD holds a roundtable on competition in bidding markets

Executive summary, by the Secretariat Considering the discussion at the roundtable, the delegates' submissions and the background paper, several key points emerge: Merger analysis in bidding markets (1) The term "bidding market" does not contribute to understanding competition in a market. Definitions of "bidding markets"typically include the following concepts: "Winner takes all," so each supplier either wins all or none of the order. There is therefore no smooth trade-off between the price offered and the quantity sold. "Lumpy competition," that is, each contest is large relative to a supplierís total sales in a period. "Every contest is a new contest". In other words, there is no ìlock-in inî by which the outcome of one contest importantly determines another. Sometimes,

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

  • OECD - Competition Division (Paris)

Quotation

OECD, The OECD holds a roundtable on competition in bidding markets, 1 October 2006, e-Competitions October 2006, Art. N° 85699

Visites 46

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues