Price Determination in Public Procurement
Simulation
Bibliographic Data
| ID | 6109242 |
|---|---|
| Authors | Martin Schmidt (0000-0002-3019-1595, Masaryk University, corresponding author) |
| Year | 2016 |
| Volume | 64 |
| Issue | 5 |
| Pages | 541-558 |
| Publication date | 2016-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Politická ekonomie (JOURNAL) |
| Journal identifiers | ISSN: 0032-3233 • E-ISSN: 2336-8225 |
| Publisher | Prague University of Economics and Business (PUBLISHER • CZ) |
| DOI | 10.18267/j.polek.1087 |
| OpenAlex | W2509406225 |
| Language | EN |
| Citations received | 1 |
| References cited | 26 |
The article examines a mechanism of bid price determination in public procurement by individual tenderers. An auction model based on game theory, which maximizes expected profit of a firm bidding for public contract, is used to analyse this process. Firm within the model decides by comparing expected profit and transaction costs associated with submitting the bid whether to submit the bid or not. Furthermore, the article analyzes empirical data on public works contracts in the field of construction and reconstruction of wastewater treatment plants in the Czech Republic. The probability distribution of bid prices submitted by individual firms is mainly examined on these data. Based on the presented model and some finding from the data, a simulation of sequential biddings is executed consequently in which individual firms in their decision making use available data on submitted bids from the previous contracts
Bidding · Business · Call for bids · Database transaction · Economics · Industrial organization · Microeconomics · Procurement · Profit (economics) · Real-time bidding · Transaction cost · Transaction data · Auction Theory and Applications · Computer Science · Marketing · Public Procurement and Policy · Supply Chain and Inventory Management
| Unique citing works | 1 |
|---|---|
| Citations per year | 0.17 |
| Citation span | 2020 - 2020 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |