Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271843 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10199
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
While effective bureaucracy is crucial for state capacity, its decision-making remains a black box. We elicit preferences of 900+ real-world public procurement officials in Finland and Germany. This is an important pursuit as they report having sizeable discretion and minimal extrinsic incentives. Through conjoint experiments, we identify the relative importance of multiple features of procurement outcomes. Officials prioritize avoiding unexpectedly high prices but not seeking low prices. Avoiding winners with prior bad performance is the most important feature. Officials avoid very low competition, while litigation risks and regional favoritism play minor roles. Personal preferences and office interests appear well-aligned among bureaucrats.
Subjects: 
bureaucrats
public procurement
preferences
conjoint experiments
JEL: 
D73
D90
H11
H57
H83
K41
M54
Document Type: 
Working Paper
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