2020
DOI: 10.1002/joom.1104
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The role of transparency in procurement: Revealed versus concealed scoring rules in sealed bid A + B auctions

Abstract: We investigate the impact of using a clear scoring rule in a sealed bid multi‐dimensional (A+B) procurement auction, as frequently used in government procurement. The central procurement agency in Chile (ChileCompra) asked for help to understand how concealing the scoring rule affected buyers. Using an experiment, we analyze the effect of transparently communicating the scoring rule on bidding outcomes by comparing the buyer's surplus and supplier profits when buyers expressly communicate the weight they place… Show more

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Cited by 11 publications
(17 citation statements)
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“…When a company makes its operations transparent, it reveals them not only to its customers but also to its competitors, making processes transparent makes the business easier to copy (Kirby, 2012). Furthermore, Quiroga et al (2021) find that, despite the benefits of transparency, excessive dimensions of the selection criteria empirically led to less supplier competition than predicted by theory.…”
Section: Outcomes: Benefitsmentioning
confidence: 74%
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“…When a company makes its operations transparent, it reveals them not only to its customers but also to its competitors, making processes transparent makes the business easier to copy (Kirby, 2012). Furthermore, Quiroga et al (2021) find that, despite the benefits of transparency, excessive dimensions of the selection criteria empirically led to less supplier competition than predicted by theory.…”
Section: Outcomes: Benefitsmentioning
confidence: 74%
“…SCT refers to reporting to and communicating with stakeholders to provide traceability regarding the history of the products and visibility about current activities throughout the SC Baharmand et al (2021) SCT is communicating to stakeholders about the sustainability of the organization's products and underlying sourcing and manufacturing activities Duan et al (2021) SCT, in terms of collective environmental, social, and governance (ESG) disclosure, is broadly defined as the aggregate level of material ESG information that a focal firm's customers, suppliers, and subsuppliers (the extended SC) make available to the public. Transparency is a combination of visibility, meaning that the focal firm possesses material information about upstream and downstream operations, and the public disclosure of this information Gualandris et al (2021) SCT is the practice of disclosing detailed and accurate information about operations and products, such as their origin and sourcing, manufacturing processes, costs, and logistics Montecchi et al (2021) Buyer transparency is the public disclosure of the scoring rule to potential suppliers before they submit their offers Quiroga et al (2021) SCT refers to the communication and disclosure of SC information about a company's products and operations Gligor et al (2022) Operational transparency is the sharing of procedures governing buyer-supplier transactions such that they are known to all parties and administered consistently Mir et al (2022) Transparency and visibility comprise the ability to see through an SC, prepare for disruptions, and respond to and recover from a disruption Münch and Hartmann ( 2023)…”
Section: (Sc)t Definitions Sourcementioning
confidence: 99%
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“…Information dissemination is a type of information sharing that aims to reduce information asymmetry. The literature has extensively explored the role of information sharing in mitigating the bullwhip effect (Lee et al, 1997), reducing the inventory and capacity costs (Cachon & Fisher, 2000), enhancing bidding outcome (Quiroga et al, 2021), and improving online matching (Jiang et al, 2021). Readers can refer to Ha and Tang (2017) for a comprehensive review on the studies on information sharing in supply chains.…”
Section: Literature Reviewmentioning
confidence: 99%
“…According to Ahmad and Rusdianto (2020), as transparency refers to confidence in information discovered, three elements need to be considered: disclosure, clarity, and accuracy. In addition, the Organization for Economic Co-operation and Development (OECD) has highlighted transparency as one of the 10 characteristics that underpin procurement integrity (Quiroga et al, 2021).…”
Section: Transparencymentioning
confidence: 99%