Efficiency Models Applied to A Market Economy: Economic assumptions that support the analysis of the sector and the determination of best market scenarios for efficient public procurement in Colombia

Abstract

The article presents an analysis of economic models applied to a market economy, focusing on the context of efficient public procurement in Colombia. Edgar Andrés Quiroga Natale begins by highlighting the promotion of "Efficient Public Procurement" in the country, although he notes that the concept of efficiency is not explicitly regulated in public procurement legislation, making it difficult to plan and implement efficient procurement models. The article describes the neoclassical, Paretian, and Keynesian economic models, and their relevance to government procurement in a market economy. The neoclassical model is based on the interaction of supply and demand in a general equilibrium, while the Paretian model postulates that a social situation is efficient if it is not possible to improve someone's situation without worsening another's. On the other hand, the Keynesian model emphasizes the role of the state in economic intervention to increase employment and general welfare. The article concludes that knowledge of these economic models can improve public procurement in various aspects, such as studying market competition conditions, evaluating offers, and identifying more efficient consumption scenarios.