The Winner's Curse In The Sri Lankan Construction Industry

摘要

This paper presents a study on the size of winner's curses in the Sri Lankan construction industry.The study is interesting because the existence of large winner's curses is an indicator of information and other types of inefficiency.Large winner's curses are detrimental to the development of the industry and for individual clients as well.The winning margin and the distribution of bid prices are used in detection of possible winner's curses.Based on 389 bids in 64 private sector projects,the study finds evidence of the existence of large winner's curses in the Sri Lankan construction industry.