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dc.contributor.authorWang, Mingxi
dc.contributor.authorLiu, Shulin
dc.contributor.authorWang, Shouyang
dc.contributor.authorColadas Uría, Luis
dc.identifier.citationWang, 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
dc.description.abstractSetting 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
dc.description.sponsorshipThis work was supported partly by the National Natural Science Foundation of China (No. 71001097 and 71171052) and China Postdoctoral Science Foundation (No. 201104167)
dc.publisherConvergence Information Society (CIS)
dc.rights© 2012 Convergence Information Society(CIS)
dc.subjectBidding strategy
dc.subjectUtility function
dc.titleAn Equilibrium Bid Markup Strategy
dc.contributor.affiliationUniversidade de Santiago de Compostela. Departamento de Estatística, Análise Matemática e Optimización

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