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Research on the Bidding Price of Highway Project Based on Game Theory

Author: ZhengCongXu
Tutor: GaoXing
School: Changsha University of Science and Technology
Course: Management Science and Engineering
Keywords: bidding tender offer evaluating method of the lowest evaluated price comprehensive evaluation method game theory
CLC: F542
Type: Master's thesis
Year: 2010
Downloads: 163
Quote: 5
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Abstract


With the improving of highway engineering construction of market competition in china,the competition among highway construction enterprises becomes fierce.For the bid of enterprises,it is becoming more and more difficult to win the bid,even if they succeed,the profits are being reduced gradually . And as the key of enterprise for bidding, quotation will not only influence the enterprises can win the tender or not, but also related to the profit after they did it.So the study of quotation in bid assume even greater importance.This thesis seted out from the angle of tender enterprises,researched the rational methods in bid for quoted price by using the primary evaluating methods which are maded by China’s Ministry of Transport : the lowest and comprehensive evaluated price. First, this thesis elaborated on the main process of bid and basic bidding strategy in construction corporation, and later,researched the contact between tender offer and game theory,also separately established corresponding game theory in view of the lowest and comprehensive evaluated price.Based on evaluating method of the lowest evaluated price,this article established quotation model separately under the distribution function of bidders’cost is same and different when their information is at the same level,and also analysed the situation when the information is at different level. Through the solving and analysis, this article got the theoretical formula for the optimal quotation,and according to the importance of information and cost control,made some suggestions about the work that the construction enterprises should notice.Based on the comprehensive evaluating method, this article established the different quote game model of clients and non-clients bidding base.when the clients bidding base exist, it have strong impacts on the bid evaluation price,so the bidder in the offer should predict the owner’s base bid price rationally by analyzing the owner’s preference, and adjust the quotation appropriately according to the fierce competition. In the case of non-owners base price,there are more uncertain factors that the quotation will face.Bidder should hold more project information and the history of the other bidders quote data. Through the discussion of models and the corresponding cases, this game model of the tender offer can achieve better results in the actual practice of project bidding, also can guide construction companies effectively in making a rational bid offer.

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CLC: > Economic > Transportation and economic > Land,road transport economy > Chinese land,road transport, economic
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