Joint bidding ban: pro- and anti-competitive theories of joint bidding in OCS lease sales

Journal Article · · J. Econ. Bus.; (United States)

OSTI ID:6713638

Sullivan, B; Kobrin, P

In an effort to increase competition for Outer Continental Shelf (OCS) leases, the government has sought policy alternatives that would raise the number of bids per tract. The 1976 Energy Policy and Conservation Act banned the seven largest US oil companies - Exxon, Texaco, Mobil, Gulf, Standard Oil Company of California, Standard Oil Company (Indiana) and Shell, as well as Britist Petroleum - from participation in OCS lease bidding with each other. This legal restriction led to a dramatic change in the lease-sale environment which facilitates before-and-after comparisons of bidding behavior. The ban resulted in fewer bids per tract and lower bonus revenues to the government. The observed behavior of firms seeking OCS leases both prior to and after the ban provides evidence contrary to anticompetitive hypotheses regarding joint bidding for offshore mineral leases. 25 references, 9 figures.

• Research Organization: American Petroleum Inst., Washington, DC
• OSTI ID: 6713638
• Journal Information: J. Econ. Bus.; (United States), Journal Name: J. Econ. Bus.; (United States) Vol. 33:1; ISSN JEBUD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
BIDS
COMPETITION
CONTINENTAL MARGIN
CONTINENTAL SHELF
CONTRACTS
ECONOMIC IMPACT
ENERGY POLICY
GOVERNMENT POLICIES
INDUSTRY
LEASES
OFFSHORE SITES
PETROLEUM INDUSTRY