Improving the estimation of probability of bidder participation in procurement auctions

Anticipating the number and identity of bidders has significant influence in many theoretical results of the auction itself and bidders bidding behaviour. This is because when a bidder knows in advance which specific bidders are likely competitors, this knowledge gives a company a head start when se...

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Detalles Bibliográficos
Autores: Ballesteros-Pérez, Pablo|||0000-0002-4629-9664, Pellicer, Eugenio|||0000-0001-9100-0644, Skitmore, M., Gutiérrez-Bahamondes, Jimmy H.
Tipo de recurso: artículo
Fecha de publicación:2016
País:España
Institución:Universitat Politècnica de València (UPV)
Repositorio:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
Idioma:inglés
OAI Identifier:oai:riunet.upv.es:10251/59101
Acceso en línea:https://riunet.upv.es/handle/10251/59101
Access Level:acceso abierto
Palabra clave:Bidding
Bidder identity
Auction
Tendering
Construction
Competitiveness
PROYECTOS DE INGENIERIA
INGENIERIA DEL TERRENO
Descripción
Sumario:Anticipating the number and identity of bidders has significant influence in many theoretical results of the auction itself and bidders bidding behaviour. This is because when a bidder knows in advance which specific bidders are likely competitors, this knowledge gives a company a head start when setting the bid price. However, despite these competitive implications, most previous studies have focused almost entirely on forecasting the number of bidders and only a few authors have dealt with the identity dimension qualitatively. Using a case study with immediate real-life applications, this paper develops a method for estimating every potential bidder s probability of participating in a future auction as a function of the tender economic size removing the bias caused by the contract size opportunities distribution. This way, a bidder or auctioner will be able to estimate the likelihood of a specific group of key, previously identified bidders in a future tender.