• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.1
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• pp.27-51
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• 2007

We analyze the effects of the sellers' strateiges on the final bid prices in internet auctions. We focus on the following three strategies of the seller adoption of the buy-price, setting the starting bid price, and adoption of 'the effective fixed price' which means that the starting bid price is set near the buy-price. In addition, the number of units sold single-unit or multi-unit, and item characteristics, such as whether the food is a search product (functional product) or an experience product (non-functional product), are also considered. We use real data on bids for 4 items from an online auction site. We find that in an auction for experience products when sold as single units, adopting the buy-price strategy raises the final bid price. We also find that in multi-unit auctions, starting the auction at 'the effective fixed price' raises the final bid price.

• Journal of Information Technology Applications and Management
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• v.11 no.3
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• pp.23-33
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• 2004

Internet bid systems have been widely used recently. In those systems, the bid price is provided by the seller. When the bid price is set too high compared with the normal price, the successful bid rate can be decreased. Otherwise, when it is set too low based on inaccurate information, it can result in a successful bid with no profit at all. To resolve this problem, we propose an agent that automatically generates bid prices for sellers based on various costing methods such as the high-low point method, the scatter diagram method, and the learning curve method. Through performance experiments, we have found that the number of successful bids with appropriate profit can be increased using the bid pricing agent. Among the costing methods, the learning curve method has shown the best performance. Also, we discuss about how to design and implement the bid pricing agent.

• The Journal of Society for e-Business Studies
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• v.7 no.2
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• pp.55-68
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• 2002

Internet group buying systems have been widely used recently. In those systems, because the reserve price is provided by the buyer, the success rate can be decreased if the reserve price is set too low compared with the normal price. Otherwise, an unsuitable successful bid can be made if the reserve price is set too high based on inaccurate information. Likewise, the seller's providing too high a bid price can deteriorate his/her own successful bid rate, whereas a successful bid with too low a price may make no profit in the sale. Therefore, pricing agents that recommend adequate prices based on the past buying and selling history data can be helpful. In this paper, we propose two kinds of agents. One suggests reserve prices to buyers based on the past buying history database of the system. The other recommends bid prices to a seller based on the past bidding history data of the company using the cost accounting theory. Through performance experiments, we show that the successful bid rate can increase by preventing buyers from making unreasonable reserve prices. Also, we show that, for the seller, the rate of successful bids with appropriate profits can increase. Using the pricing agents, we design and implement an XML-based group buying system.

• Journal of the Korea Convergence Society
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• v.10 no.1
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• pp.205-214
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• 2019

In Korea, the first-price sealed bid auction and the constrained mean-price sealed bid auction(buchal-je in Korean) have been used alternatively as procurement auctions. In this paper, we characterize the constrained mean-price sealed bid auction in the context of mechanism design. We consider the general ?-bidder case in which each bidder has private information. Under the assumptions of uniformly distributed valuations and linear strategies, we derive the equilibrium of the constrained mean-price sealed bid auction. Furthermore, we analyze the efficiency and the expected revenue of this auction mechanism in comparison with the first-price sealed bid auction. Finally, we conclude with the critical remarks on the practical intention of the government which uses this auction.

• International conference on construction engineering and project management
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• 2022.06a
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• pp.238-244
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• 2022

Civil projects are associated with many uncertainties because they involve a long duration, many resources, a large area, and many supply chains. Therefore, the price of a civil project is not simply proportional to the quantity and unit price of the item but has a variable value, including uncertainty risk. This study investigates the influence of the uncertainty factors in the pre-bid clarification document on bid price formation during the project bidding phase. To this end, civil projects from the California Department of Transportation (Caltrans) were used as research data. This study randomly selected fifty sample data from each of twelve counties from 2008-to 2020: six hundred. The authors observed that each project sample had 0 to n query cases due to uncertainty. Then, this study examined the project uncertainty cases and categorized them into the following four uncertainty factors: 'conflict' (UF1), 'impossibility' (UF2), 'lack' (UF3), and 'missing' (UF4). Under the extracting process, the cases are classified into four uncertainty factors. With the project not containing any uncertainty factors as a control group, the project containing these uncertainty factors was designated as an experimental group. After comparing the bidder's price, the experimental group's bid price was higher than the control group's. This result suggests that uncertainty factors in bid documents induce bidders to set a high bid price as a defense against uncertainty.

• Journal of Digital Convergence
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• v.19 no.11
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• pp.255-266
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• 2021

Investment demand for factory facilities has increased due to the balloon effect caused by housing price regulation. This study investigated the impact of the real estate market and macroeconomic factors on the bid price ratio of apartment auctions and factory auctions, focusing on the metropolitan area. To this end, we reviewed theories and previous studies on real estate auctions, and examined how macroeconomic variables affect bid price ratio of apartments and factories using the panel vector autoregressive model. It was found that the increase in the apartment bid price ratio increases as the participation in apartment auctions increases. However, as the factory bid price ratio increases, the factory bid price ratio does not increase, it was confirmed that the positive (+) relationship between the successful bid price ratio and the bid price ratioe does not exist, unlike previous studies. Based on the analysis results, it is suggested that the real estate market and macroeconomic factors should be considered for the stable operation of the related relevant auction system. This study has limitations in that it is limited to the metropolitan area. In the future, research that expands the scope of research to the whole country and provinces should be conducted.

• Korean Journal of Construction Engineering and Management
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• v.19 no.3
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• pp.52-60
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• 2018

Korea's public construction projects are under construction through bidding, however, due to the nature of the bidding, collusion between participants can occur. The collusion of bids accordingly damages the client. So, it is necessary to calculate the appropriate fictitious competition price to compensate for this. In this regard, econometrics methods are generally used, but there are limitations and issues arising from the nature of construction, especially design-build bid. Therefore, this study proposes a method to estimate reasonable competitive bid-price in design-build bid. It derives the lowest bid-price from the design submitted by the proponent and estimates the competitive bid-price by examining the factors according to the penetration rate according to the technical level of the tester, the skill level of the competitor, and the type of tester. Based on the method proposed in this study, a reasonable price can be derived that reflects the characteristics of the design and construction bidding bidder selection method and also it can be used as a reference material in the actual bidding process as well as calculating the damage due to the answer.

• Communications for Statistical Applications and Methods
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• v.18 no.1
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• pp.23-34
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• 2011

Property auctions have become a new method for real estate investment because the property auction market grows in tandem with the growth of the real estate market. This study focused on the statistical model for predicting bid price rates which is the main index for participants in the real estate auction market. For estimating the monthly bid price rate, we proposed a new method to make up for the mean of regions and terms as well as to reduce the prediction error using a decision tree analysis. We also proposed a linear regression model to predict a bid price rate for individual auction property. We applied the proposed model to apartment auction property and tried to predict the bid price rate as well as categorize individual auction property into an auction grade.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.632-637
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• 2006

Our country's bidding system had made the lowest price successful bid system in foundation before introducing eligibility review system at July, 1995, and a averaged- price successful bid system or the restrictive-lowest price successful bid system had been enforced by repletion. However, they were introduced as dumping that do not reach in direct cost level of construction cost is generalized and worry about illegal construction practices rises by the lowest price successful bid system. According as they had not been promoted construction company's technical development effort or cost reduction effort, vicious circle that advocate competition principle again and recur as the lowest price successful bid system is repeated last 50 years. Therefore, I present improvement direction that can satisfy all Global Standard and real condition of our country through foreign countries example analysis to cope with the rapidly changing building circumstances socially and economically to correspond actively to the construction industry's reorganization to reconsider domestic construction engineering's competitive power.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.77-81
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• 2015

The unit price contracting is the standard contracting method for highway projects in the U.S. As a result, state highway agencies have collected a large amount of historical bid data that they can use to determine engineer's estimates for future projects. The estimator must carefully consider various characteristics of a new project such as its location to determine an engineer's estimate as accurate as possible before bid letting. Higher cost estimates can result in the loss of the available budget and lower cost estimates may lead to deferral and delay of projects. The study uses the historical bid data obtained from Iowa Department of Transportation and develops a Geographic Information System (GIS) tool to visually show the variation of unit prices over the map using a spatial interpolation technique. The interpolation map can be used to estimate the unit price of the item at any location across Iowa. This noble method allows the estimator to effectively and fully utilize the historical bid data in a very time efficient manner and determine more accurate cost estimation.