Evaluating the Effects of Targeted Information on Public Procurement Competition: Pre-Analysis Plan

Last registered on April 12, 2025

Pre-Trial

Trial Information

General Information

Title
Evaluating the Effects of Targeted Information on Public Procurement Competition: Pre-Analysis Plan
RCT ID
AEARCTR-0014612
Initial registration date
January 17, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
January 17, 2025, 7:51 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
April 12, 2025, 7:26 AM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

Region

Primary Investigator

Affiliation
Department of Economics, Faculty of Economics, Business and Tourism, University of Split

Other Primary Investigator(s)

PI Affiliation
Department of Economics, University Bocconi
PI Affiliation
Department of Economics, University Bocconi

Additional Trial Information

Status
In development
Start date
2025-04-20
End date
2025-09-30
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We test whether providing firms with i) information on tender opportunities available in the procurement market, and ii) information on the extent of competition and on the bidding behavior for similar tenders in the past, increases the likelihood that they bid and win public procurement contract. Our experiment takes place in Croatia and involves more than 15,000 firms. For a random subset of tenders published in the Official Gazette of Croatia, we will send via email targeted information to a subset of the firms in our sample. We will then measure outcomes relying on administrative data covering the universe of procurement contracts in the country.
External Link(s)

Registration Citation

Citation
Decarolis, Francesco, Stjepan Srhoj and Edoardo Teso. 2025. "Evaluating the Effects of Targeted Information on Public Procurement Competition: Pre-Analysis Plan." AEA RCT Registry. April 12. https://doi.org/10.1257/rct.14612-2.0
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Experimental Details

Interventions

Intervention(s)
There are 3 treatment arms. The control group will receive no information. Treatment arm 1 will receive an email with hyperlinks to a subset of tenders recently published in the Official Gazette, together with a simple step-by-step guide to access the tender documents and submit the bid. Treatment arm 2 will receive, in addition to the information received by Treatment arm 1, also information on the extent of competition and on the bidding behavior for similar tenders in the past.
Intervention (Hidden)
There are 3 treatment arms. The control group will receive no information. Treatment arm 1 will receive an email with hyperlinks to a subset of tenders recently published in the Official Gazette, together with a simple step-by-step guide to access the tender documents and submit the bid. Treatment arm 2 will receive, in addition to the information received by Treatment arm 1, also information on the extent of competition and on the bidding behavior for similar tenders in the past.
Intervention Start Date
2025-04-20
Intervention End Date
2025-07-20

Primary Outcomes

Primary Outcomes (end points)
We will measure outcomes both at the firm-tender level (to assess whether treated firms change their participation in procurement for tenders that are part of the intervention), at the firm-level (to assess whether treated firms change their general participation in procurement), and at the tender-level (to assess whether treated tenders are characterized by different final outcomes).
Outcomes at the firm-tender level:
1. Indicator equal to one if the firm bids for a specific tender
2. Indicator equal to one if the firm wins a specific tender
Outcomes at the firm level:
1. Overall number of tenders for which the firm bids over the duration of the intervention.
2. Overall number of tenders that are not part of the intervention for which the firm bids over the duration of the intervention.
3. Overall number of tenders that the firm wins over the duration of the intervention.
4. Overall number of tenders that are not part of the intervention that the firm wins over the duration of the intervention.
Outcomes at the tender level:
1. the total number of competitors on a particular tender.
2. Winning-to-estimated bid – the final contracted price divided by the estimated contract size.
Primary Outcomes (explanation)
We will measure outcomes both at the firm-tender level (to assess whether treated firms change their participation in procurement for tenders that are part of the intervention), at the firm-level (to assess whether treated firms change their general participation in procurement), and at the tender-level (to assess whether treated tenders are characterized by different final outcomes).
Outcomes at the firm-tender level:
1. Indicator equal to one if the firm bids for a specific tender
2. Indicator equal to one if the firm wins a specific tender
Outcomes at the firm level:
1. Overall number of tenders for which the firm bids over the duration of the intervention.
2. Overall number of tenders that are not part of the intervention for which the firm bids over the duration of the intervention.
3. Overall number of tenders that the firm wins over the duration of the intervention.
4. Overall number of tenders that are not part of the intervention that the firm wins over the duration of the intervention.
Outcomes at the tender level:
1. the total number of competitors on a particular tender.
2. Winning-to-estimated bid – the final contracted price divided by the estimated contract size.

Secondary Outcomes

Secondary Outcomes (end points)
We will measure whether treated effects persist beyond the duration of our intervention. This would be consistent with a mechanism in which providing information about procurement opportunities for a short period of time manages to “teach” firms how to participate in the procurement market. The outcomes, measured at the firm level, will be the total number of bids submitted and of contracts won in the 6 months following the end of the intervention.
Secondary Outcomes (explanation)
We will measure whether treated effects persist beyond the duration of our intervention. This would be consistent with a mechanism in which providing information about procurement opportunities for a short period of time manages to “teach” firms how to participate in the procurement market. The outcomes, measured at the firm level, will be the total number of bids submitted and of contracts won in the 6 months following the end of the intervention.

Experimental Design

Experimental Design
We will randomize the intervention at two levels: tender and firm-level.
Experimental Design Details
The experiment is characterized by two levels of randomization. First, we will randomly allocate firms to 3 treatment arms. Then, over the course of 3 months, we will randomly allocate tenders published in the Official Gazette each week to 2 treatment arms.

While we specify a 3-months period as the duration of the intervention, we might extend the duration by one or two months if the public buyers end up publishing a number of tenders that is lower than what we expect based on data from previous years.
Randomization Method
Randomization done in office by a computer.
Randomization Unit
We will randomize the intervention at two levels: tender and firm-level.

First, at week-level we will randomize at the level of active tenders, we will conduct an equal split with computer generated random selection of tenders subject to intervention, and others that serve as control.

Second, within those treated tenders, we will randomly allocate firms with the expertise to participate in upcoming public tenders, determining which of these firms will receive a) information about the active tender, and b) a detailed report about the active tender. Within the treated tenders, firms will be randomly assigned to three groups: i) treatment arm 1 (information about the active tender), ii) treatment arm 2 (a detailed report about the active tender), and iii) a control group.


This approach allows us to capture nuanced variations in competition and bidding behavior across different tenders, ensuring that the intervention is relevant to the specific context of each procurement opportunity. By selecting certain tenders to receive the treatment while others serve as a control, we can effectively evaluate the overall impact of the intervention on competition at the public tender level. The second level of randomization is implemented within the treated tenders, where firms with the expertise to participate in upcoming public tenders are randomly allocated to receive targeted information about those tenders. This individual-level randomization enables us to analyze changes in firm behavior, such as participation rates and bidding strategies, while providing insights into how access to information influences decision-making among various firms, particularly smaller firm and firms further away from the public buyer. By incorporating both tender and firm-level randomization, our study will yield comprehensive findings on the effectiveness of the intervention and its implications for enhancing competition in public procurement.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
800 tenders
Sample size: planned number of observations
15,000 firms
Sample size (or number of clusters) by treatment arms
5000 firms, 400 tenders.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Tender-level number of competitors: mean competition: 1.650, Power: 90%, Total sample: 798, Effect: 0.05, Mean difference: 0.083, Standard deviation: 0.4, Cohen's d: 0.206, Alpha: 0.05. Firm-level probability of winning: Proportion in control group: 0.168, Power: 90%, Total sample: 3924, Effect: 0.05, Proportion in treated group: 0.218, Alpha: 0.05.
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
Ethics committee, Faculty of Economics, Business and Tourism, University of Split
IRB Approval Date
2024-10-23
IRB Approval Number
KLASA: 004-01/24-01/03; URBROJ: 2181-196-02-05-24-05
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials