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Analysis of "bid-rigging norms" Model in the Application of the Norms Game Model

In this study, we build the bid-rigging norms model in the application of Axelrod’s norms game model and run simulations. We demonstrate that the auction system itself, which is mainly used in public procurement, has a structure that invites bid-rigging. Besides, we clarify that meta norms are not necessary for establishing bid-rigging norms, though Axelrod pointed out the necessity of meta-norms for establishing social norms. We also reveal that the enforcement, which means punishment for deviation from bidding rings, has a critical role in establishing and maintaining bid-rigging norms.