Research Journal of The University of Zagreb, Faculty of Civil Engineering

Organization, Technology & Management in Construction: An International Journal
ISSN 1847-5450 print / ISSN 1847-6228 online
udc 62:658(05)

Abstracting/Indexing: The papers published in Organization, Technology & Management in Construction: An international Journal are abstracted/indexed by: EBSCO, INSPEC, ProQuest Science Journals

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<<Table of Content

1. Christian Brockmann:

The Mechanics of Collusion


The construction industry is according to the bribe Payers index from transParency international the most corruPt industry, well ahead of the defense sector. Corruption and collusion are closely interrelated in the public sector, they nurture each other. However, collusion does not depend on corruption, it can thrive by itself. A basic question is whether collusion is mostly a moral or an institutional issue. Using the title “mechanics of collusion” and proving the implied automatic reactions clearly strengthens the argument for an institutional view. There is no freedom of choice in mechanics and accordingly there are no moral issues. The predominant antecedents of the construction industry (sealed-bid auctions, competitive environment, large contract volumes) are setting incentives for collusive cooperation. Such a behavior can even be morally defended. Since it is illegal (while extant) in most countries, it can not be encouraged. However, it is worthwhile to discuss changes to the procurement process that will set incentives to discourage collusion.


collusion, game theory, institutions, monopsony