Current State and Countermeasures of Procurement Collusion: An Exploratory Study

Procurement collusion is a significant issue affecting both public and private sectors, typically characterized by suppliers and contractors manipulating competitive processes to inflate costs, reduce quality, or diminish competition. This exploratory study reviews key literature on the mechanisms of procurement collusion, including bid-rigging, market-sharing, and favor exchanges. The economic impact is substantial, particularly in public procurement, where corruption results in significant financial losses and erodes institutional trust. Technological solutions such as AI and blockchain show promise in detection and prevention, though these innovations must be supported by robust legal and regulatory frameworks. However, cultural acceptance of corruption, coupled with limited regulatory resources, poses operational challenges. This study suggests that procurement collusion can be effectively addressed through a multi-faceted approach, incorporating technological innovations, stronger legal frameworks, and institutional reforms.