A Social Network-Based Examination on Bid Riggers’ Relationships in the Construction Industry: A Case Study of China
Loading...
Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
MDPI
Abstract
Collusive bidding has been an insidious issue in the construction industry. Bidders initiate
collusive networks of various sizes to win market shares. The popularity of collusive bidding
networks affects market fairness and erodes the interests of market players. Although considerable
research efforts were made to diagnose collusive bidding networks, there remains a gap in knowledge
regarding the relationships bid riggers use to engage in the networks. Therefore, this study used
the social network method, where two hundred sixteen collusion cases were collected from China
to test these relationships. The results show that collusive bidding networks were characterized by
sparseness, a small scale, a high concentration, and strong randomness. Three types of collusive
bidding networks were also detected: contractual, spontaneous, and shadow. Furthermore, these
collusive bidding networks had discrepancies regarding participants’ identities, forms of collusive
bids, and the determination of bid winners. It was found that the proposed social network model of
deliberating bid riggers’ relationships lays a solid foundation for the detection of collusive bidding in
the construction sector.
Description
This research article was published by MDPI in 2021