An Evaluation of a Bidder Training Program

De Silva, Dakshina and Hubbard, Timothy and Kosmopoulou, Georgia (2020) An Evaluation of a Bidder Training Program. International Journal of Industrial Organization, 72: 102661. ISSN 0167-7187

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Abstract

In an effort to accommodate a change in the Federal Highway Administration's goals towards race-neutral methods concerning the involvement of Disadvantaged Business Enterprises in contracting, the Texas Department of Transportation created a bidder training program. Using ten years of data, we examine the effects this program had on bidder behavior, project costs for the government, and the ability of these _rms to compete. Unlike other policies that target these firms, we find the program generated substantial savings for the state which come at a very low cost.