Research on the formation mechanism for corruption of the public procurement auction

This paper establishes a game model of principal-agent procurement contract about the public procurement principals authorized the procurement agent implementation the procurement rule, which the bidders meet the contract of quality standards and the lowest price quotation will win the public purchasing contract. The resource allocation efficiency of this contract is studied in a market environment of completely transparent and symmetric information. Further, the formation mechanism of the public procurement corruption is studied through the above contract under the opposite conditions.