Collaborative Research: DCL: HBCU EAGER Network effects, competition and survival of small and minority owned firms in public procurement

奖项摘要亚历山大/科斯莫普合作研究：HBCU DCL，EARGER：公共采购中少数族裔小公司的网络效应、竞争和生存小公司，特别是那些由经济困难群体拥有的小公司，为这一群体提供了很大一部分就业机会。这些公司在与大公司竞争时往往处于竞争劣势，并经常在这一过程中失败。这些公司能否组成网络，相互学习，提高效率，有效地与更大的公司竞争，并扩大自己的活动？这些网络如何影响中标和有效实施项目的机会？本研究项目将使用俄克拉荷马州道路建设招标项目的数据来研究网络对小型少数族裔企业效率的影响。这项研究将集中于增加形成网络的机会的因素，以及这些网络对公司在投标中的成功、成本效率、利润和长期稳定性的影响。这一研究项目的结果将加深我们对决定小少数企业成功的因素的理解，并在此过程中为如何最好地提高小企业的总体竞争力提供政策指导。由于这一研究项目的结果可以指导提高小企业效率的政策，因此结果也可以增加美国经济的竞争力。这项合作研究将研究小型少数民族企业的产业组织和竞争力。具体地说，它将使用行政和实地数据来研究网络形成对小型少数族裔公司在竞标和完成政府基础设施合同方面的成功和生存的影响。研究的重点是：(I)在承包工作中重复竞争或合作的承包商之间形成战略网络；(Ii)网络对小少数企业赢得合同的概率的影响；(Iii)网络对小企业生存的影响。俄克拉荷马州的建筑投标数据具有足够详细的信息，使PI能够在分析网络对效率的影响时识别网络、控制公司的异质性和所有权结构。私人投资公司将开发一种拍卖模型，允许由于经验、效率和网络连接的差异而导致不同类型的公司之间的信息不对称。该模型将网络的形成视为由网络中的公司净盈利能力相对于网络外的盈利能力内生地决定的。私人投资机构将使用贝叶斯方法来估计模型。这一研究项目的结果将有助于我们理解网络形成与小型少数族裔企业效率之间的关系，并在此过程中，有助于美国经济的竞争力。

Award Abstract Alexander/KosmopoulousCollaborative Research: HBCU DCL, EARGER: Network Effects, Competition and Survival of Small Minority-Owned Firms in Public ProcurementSmall firms, especially those owned by economically disadvantaged groups, provide a large share of employment for this population. These companies are often at competitive disadvantage when they compete against large firms and often lose in the process. Can these firms form networks to learn from each other, increase their efficiency, compete effectively against larger firms and expand their activities? How do these networks affect the chance of winning a bid and effectively carrying out the project? This research project will use data from the state of Oklahoma road construction bidding program to study the impact of networks on efficiency of small minority-owned businesses. The study will focus on factors that increase the chances of forming networks and the effects of these networks on firm success in bidding, cost efficiency, profits, and long-term stability. The results of this research project will increase our understanding what determines the success of small minority-owned firms and in the process, provide policy guidance on how best to increase the competitiveness of small firms generally. Because the results of this research project could guide policies to increase the efficiency of small firms, the results could also increase the competitiveness of the U.S. economy. This collaborative research will study the industrial organization and competitiveness of small minority-owned firms. Specifically, it will use administrative and field data to study the effects of network formation on the success and survival of small, minority-owned firms in bidding for and completion of government infrastructural contracts. The research focuses on: (i) strategic network formation among contractors who repeatedly compete or cooperate in contracting jobs; (ii) the impacts of networks on the probability of a small minority-owned firm winning a bid for contract; (iii) the effects of networks on the survival of small firms. The state of Oklahoma construction bidding data has enough detailed information to allow the PIs to identify networks, control for heterogeneity of firms and ownership structure when analyzing the effects of networks on efficiency. The PIs will develop an auctions model that allows for information asymmetries across different types of firms due to differences in experience, efficiency and network connections. The model treats network formation as endogenously determined by firm net profitability in a network relative to profitability outside a network. The PIs will use Bayesian methods to estimate the models. The results of this research project will inform our understanding of the relationship between network formation and efficiency of small minority-owned firms and in the process, contribute to the competitiveness of the U.S. economy.