Publication:
Detecting Collusion in Timber Auctions : An Application to Romania

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dc.contributor.authorSaphores, Jean-Daniel
dc.contributor.authorVincent, Jeffrey R.
dc.contributor.authorMarochko, Valy
dc.contributor.otherAbrudan, Ioan
dc.contributor.otherBouriaud, Laura
dc.contributor.otherZinnes, Clifford
dc.date.accessioned2012-06-26T17:44:37Z
dc.date.available2012-06-26T17:44:37Z
dc.date.issued2006-12
dc.description.abstractRomania was one of the first transition countries in Europe to introduce auctions for allocating standing timber (stumpage) in public forests. In comparison with the former system in the country-administrative allocation at set prices-timber auctions offer several potential advantages: greater revenue generation for the government, a higher probability that tracts will be allocated to the firms that value them most highly, and stronger incentives for technological change within industry and efficiency gains in the public sector. Competition is the key to realizing these advantages. Unfortunately, collusion among bidders often limits competition in timber auctions, including in well-established market economies such as the United States. The result is that tracts sell below their fair market value, which undermines the advantages of auctions. This paper examines the Romanian auction system, with a focus on the use of econometric methods to detect collusion. It begins by describing the historical development of the system and the principal steps in the auction process. It then discusses the qualitative impacts of various economic and institutional factors, including collusion, on winning bids in different regions of the country. This discussion draws on information from a combination of sources, including unstructured interviews conducted with government officials and company representatives during 2003. Next, the paper summarizes key findings from the broader research literature on auctions, with an emphasis on empirical studies that have developed econometric methods for detecting collusion. It then presents an application of such methods to timber auction data from two forest directorates in Romania, Neamt and Suceava. This application confirms that data from Romanian timber auctions can be used to determine the likelihood of collusion, and it suggests that collusion reduced winning bids in Suceava in 2002 and perhaps also in Neamt. The paper concludes with a discussion of actions that the government can take to reduce the incidence of collusion and minimize its impact on auction outcomes.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/12/7293538/detecting-collusion-timber-auctions-application-romania
dc.identifier.doi10.1596/1813-9450-4105
dc.identifier.urihttps://hdl.handle.net/10986/9263
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4105
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADMINISTERED PRICES
dc.subjectADVERTISING
dc.subjectAGRICULTURE
dc.subjectANNUAL HARVEST
dc.subjectANNUAL QUOTA
dc.subjectAREAS OF FOREST
dc.subjectAUCTION
dc.subjectBASIC
dc.subjectBIDDING
dc.subjectCOMMERCIAL ENTERPRISES
dc.subjectCOMMUNITIES
dc.subjectCOUNTRY'S FOREST AREA
dc.subjectDEMAND FOR TIMBER
dc.subjectDIRECT MARKETING
dc.subjectDOMESTIC WOOD
dc.subjectFAIR
dc.subjectFOREST
dc.subjectFOREST ACCESS
dc.subjectFOREST ADMINISTRATION
dc.subjectFOREST ASSOCIATIONS
dc.subjectFOREST CODE
dc.subjectFOREST COMPOSITION
dc.subjectFOREST DEVELOPMENT
dc.subjectFOREST DIRECTORATES
dc.subjectFOREST DISEASES
dc.subjectFOREST HEALTH
dc.subjectFOREST INVENTORY
dc.subjectFOREST MANAGEMENT
dc.subjectFOREST MANAGEMENT PLANS
dc.subjectFOREST OFFICERS
dc.subjectFOREST OWNERS
dc.subjectFOREST OWNERSHIP
dc.subjectFOREST PRODUCTION
dc.subjectFOREST PRODUCTS
dc.subjectFOREST PROTECTION
dc.subjectFOREST REGENERATION
dc.subjectFOREST ROADS
dc.subjectFOREST SECTOR
dc.subjectFOREST USERS
dc.subjectFORESTRY ENTERPRISE
dc.subjectFORESTRY RESEARCH
dc.subjectFORESTS
dc.subjectISSUES
dc.subjectLABOR MARKET
dc.subjectLOGGING
dc.subjectLOGGING COMPANIES
dc.subjectLOGGING COMPANY
dc.subjectLOGGING EQUIPMENT
dc.subjectLOGGING OPERATIONS
dc.subjectLOGS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET ECONOMIES
dc.subjectMARKET ECONOMY
dc.subjectMARKET PRICE
dc.subjectMARKET VALUE
dc.subjectMARKETING
dc.subjectMIDDLE EAST
dc.subjectMIDDLE EASTERN
dc.subjectMOUNTAINS
dc.subjectNATIONAL FORESTRY
dc.subjectNATIONAL FORESTS
dc.subjectPRICE VOLATILITY
dc.subjectPRIMARY FOREST
dc.subjectPRIVATE FORESTS
dc.subjectPROCESSORS
dc.subjectPURCHASING
dc.subjectREFUSE
dc.subjectREGIONAL FOREST
dc.subjectROAD NETWORK
dc.subjectSALE
dc.subjectSALVAGE LOGGING
dc.subjectSAN
dc.subjectSPECIES
dc.subjectSPREAD
dc.subjectSTATE FORESTS
dc.subjectSUPPLIERS
dc.subjectSURPLUS
dc.subjectTECHNOLOGICAL CHANGE
dc.subjectTIMBER
dc.subjectTIMBER AUCTIONS
dc.subjectTIMBER BUYERS
dc.subjectTIMBER HARVEST
dc.subjectTIMBER HARVESTING
dc.subjectTIMBER HARVESTS
dc.subjectTIMBER MARKET
dc.subjectTIMBER MARKETS
dc.subjectTIMBER PRICES
dc.subjectTIMBER SALES
dc.subjectTIMBER SUPPLY
dc.subjectTOTAL SALES
dc.subjectTREE
dc.subjectTREES
dc.subjectVOLATILITY
dc.subjectWEBSITE
dc.subjectWESTERN EUROPE
dc.subjectWILDLIFE
dc.subjectWOOD
dc.subjectWOOD MARKET
dc.subjectWOOD PROCESSING
dc.subjectWOOD PROCESSING INDUSTRY
dc.subjectWOOD-BASED INDUSTRIES
dc.titleDetecting Collusion in Timber Auctions : An Application to Romaniaen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleDetecting Collusion In Timber Auctions : An Application To Romania
okr.date.doiregistration2025-04-10T09:39:48.080812Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/12/7293538/detecting-collusion-timber-auctions-application-romania
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeAgriculture
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid990491468297344541
okr.identifier.doi10.1596/1813-9450-4105
okr.identifier.externaldocumentum000016406_20061227164638
okr.identifier.internaldocumentum7293538
okr.identifier.reportWPS4105
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/12/27/000016406_20061227164638/Rendered/PDF/wps4105.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryRomania
okr.region.geographicalEastern Europe
okr.topicTechnology Industry
okr.topicRural Development::Forestry
okr.topicEnvironment::Wildlife Resources
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicInternational Economics and Trade::Access to Markets
okr.topicInternational Economics and Trade
okr.topicIndustry
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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