Abstract
Detailed fixing of contract terms allows procurers to get a service that fits their interests, but can reduce competition in auctions. We examine which combinations of conditions lead to restriction of entry in public procurement and subsequent increases in price. Using data on public procurement in Nizhny Novgorod region in 2008-2013, we show that the requirement to locate gasoline stations in different districts of the city/region most strongly limits the attractiveness of procurement for potential suppliers. While restrictions are often seen as an instrument of favoritism, we show that they may be used due to the nature of the activities of procurers.
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