RT Journal Article
T1 An Equilibrium Bid Markup Strategy
A1 Wang, Mingxi
A1 Liu, Shulin
A1 Wang, Shouyang
A1 Coladas Uría, Luis
K1 Bidding strategy
K1 Procurement
K1 Cobb-Douglas
K1 Utility function
AB Setting a bid markup strategy is a very difficult task. Nevertheless, it is important to construction firms or consulting engineering companies because the development of successful bidding strategies is a key factor to their survival in business. Based on the two bidding criteria of the conditional profit ratio and the work force continuity, this short paper first presents the explicit expression of an equilibrium bid markup strategy in procurement auctions. However, the two bidding criteria conflict with each other and tradeoffs must be made. To make tradeoffs between the two bidding criteria, a new bid markup selection making model is then developed by Cobb-Douglas utility function. The model generalizes the classical expected profit model in the sense that the latter's objective function is only a special case of the former. The result shows that the relative importance of a bidding criterion to another has significant effect on the selection of the equilibrium bid markup strategy
PB Convergence Information Society (CIS)
SN 2093-4009
YR 2012
FD 2012
LK http://hdl.handle.net/10347/18561
UL http://hdl.handle.net/10347/18561
LA eng
NO Wang, M., Liu, S., Wang, S. & Coladas Uría, L. (2012). An Equilibrium Bid Markup Strategy. International Journal of Information Processing and Management. Vol. 3, Issue 2, p- 7-13
NO This work was supported partly by the National Natural Science Foundation of China(No. 71001097 and 71171052) and China Postdoctoral Science Foundation (No.201104167)
DS Minerva
RD 29 abr 2026