Bidding Strategy: Winning over Key Competitors
Publication: Journal of Construction Engineering and Management
Volume 118, Issue 1
Abstract
This paper presents a method by which the probability of winning in the competitive bidding problem can be improved by obtaining additional information concerning a key competitor. The competitive bidding problem as suggested by Friedman consists of describing the bidding behavior of each competitor by developing a probability density function representing the distribution of the ratio of a competitor's bid to “our” cost estimate. This static distribution for a key competitor is improved by maintaining a volume‐time function on competitor k. A function relating the markup of competitor k's static distribution function, thereby improving the calculation for the probability of winning over (defeating) competitor k. Equations for combining the probability of winning over competitor k with the probability of winning over other competitors is also presented.
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References
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 118 • Issue 1 • March 1992
Pages: 151 - 165
Copyright
Copyright © 1992 ASCE.
History
Published online: Mar 1, 1992
Published in print: Mar 1992
Authors
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