Events

Professor Edoardo Teso
Assistant Professor (Department of Economics)
Bocconi University
Associate Professor (MEDS Department)
Kellogg School of Management
Northwestern University

We study whether information frictions and corruption perceptions deter firms from doing business with the government. We conduct two firm-level randomized controlled trials in collaboration with Uganda’s public procurement and anti-corruption agency. The first provides firms with timely information on tenders. The second shares audit results and other firms’ perceptions about public entities. We find that information on tender opportunities alone does not increase participation in procurement. However, addressing misperceptions about public sector integrity increases bids and contracts won. Our findings highlight the limits of transparency reforms that ignore firms’ perceptions about government corruption and inefficiency.