• International conference on construction engineering and project management
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• 2022.06a
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• pp.18-24
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• 2022

State highway agencies (SHAs) typically apply a competitive procurement procedure to select contractors for their design-bid-build projects. Since the level of competition affects construction bid prices and project outcomes, the Federal Highway Agency (FHWA) suggests SHAs seek ways to improve competition among contractors continuously. However, they rarely conduct an empirical assessment of the current competition level necessary to identify room for improvement. Besides the number of bidders on a project, other factors such as winning or losing rates among the contractors in previous projects can also indicate the degree of competition; only a few contractors may have won the majority of the projects in a specific region. However, few studies have investigated such factors. This paper proposes a network analysis-based approach to evaluating contractor competition levels of highway projects using historical bid tabulation data. The proposed method provides insights into overall competition levels, the determination of competitive contractors, and winning rate distribution among contractors.

• International Commerce and Information Review
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• v.7 no.2
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• pp.25-47
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• 2005

This study wishes to analyze that affect in purchasing decision in Telecommunication operation company's international competitive bidding. When submit a tender laying stress on international competitive bidding of the Telecommunication operation companies among specially various international competitive bidding, I wish to investigate game theory enemy by bid method through access method about bid form affecting in buyer's purchasing decision.

• 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.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.10
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• pp.610-615
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• 2003

With the growing competitive pressure from market participants, utilities, consumer and government, analyses of existing competitive electricity market become more important. The presence of congestion in the transmission system can significantly increase the potential of exercising market power. Since the congestion in the network depends on the several factors, the market power cannot be simply analyzed through the existing indices. This paper presents a systematic analysis on local market power under uniform pricing scheme and provides determining approach of the level of price cap as mitigation measure of the strategic market power.

• Architectural research
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• v.13 no.3
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• pp.49-56
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• 2011

Competitive bidding in construction is concerned with contractors making strategic decisions in respect of determination of bid price if contractors opt to bid. This study presents a strategy model for deciding optimum tender price with reflecting appropriate profit in competitive bidding using Bayesian regression analysis (BRA). The purpose of the developed model is to help contractors to secure suitable profitability by predicting the actual profit based on key variables. They may affect construction cost at bidding phase, ultimately which help contractors to secure high quality output. The model was tested empirically by application to a bidding dataset collected from a large South Korea contractor. BRA allows contractors to estimate more accurate actual profit by reflecting not only objective information but also subjective experiences and judgments. Consequently, the model can contribute to improvement of decision-making process for setting an optimum tender price.

• The Journal of Fisheries Business Administration
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• v.25 no.2
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• pp.89-102
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• 1994

This paper is to survey the major results of the game-theoretic models and recent research directions of the literature on auctions and competitive biddings. This paper classifies the auctions and competitive biddings into the following four major types:(i) English auction, (ii) Dutch auction, (iii) the first-price sealed-bid auction, (iv) the second-price sealed-bid auction. In order to survey the major ideas related to auctions and competitive biddings, we use two representative theoretical models developed under the game-theoretic framework : (i) the independent private value model are summarized as follows ; (1) The Dutch auction and the first-price auction are strategically equivalent, and so are the English auction and the second-price auction. (2) At the symmetric equilibria, the expected selling price is the same for all four types of auction. Meanwhile, the major results of the general model are as follows ; (1) When bidders are uncertain about their value extimate, the English and second-price auctions are not equivalent, but the dutch and the first-price auctions are still strategically equivalent. (2) The English auction generates the higher expected prices than the second-price auction. Also, when bidders are risk-neutral, the second-price auction generated higher average prices than the Dutch and the first-price auctions.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.6
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• pp.333-339
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• 2003

Competition among electric generation companies is a major goal of restructuring in the electricity industry. In electricity market, a huge volume of commodities will be traded through competitive bidding. The choice between uniform and pay-as-bid pricing for electricity auction has been one of most important issues in deregulated electricity market. This paper proposes a constrained Bertrand model for analyzing the electricity auction market of price competition model. The issue of the two pricing rules of uniform and pay-as-bid is studied from the viewpoint of consumer's benefit. This paper also shows that transmission congestion depends on the pricing mechanism. Pay-as-bid pricing gives less possibility of transmission congestion by price competition, and less burden to consumers in the simulation results.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.38 no.5
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• pp.741-749
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• 2018

The purpose of this study is to propose a rational and scientific damage calculation model in relation to damages caused by bid rigging in construction projects. Previous studies and precedents in relation to calculating damages from bid rigging suggest that the main issue was the lack of consideration in standards for deciding successful bids, selection of inadequate standard comparative markets, insufficiency in analyzing the appropriateness of competitive bid price influence factors, and absence of calculation model verification. In order to improve on these issues, a damage calculation method on alternative tenders for construction projects was proposed. For this calculation model, first, a standard market adequate to the successful bid selection standards was determined, second, an appropriate factor was selected by analyzing the correlation between competitive bid price influence factors, and third, a regression analysis was conducted on the selected factor. Lastly, this was demonstrated through verification of appropriateness, significance & normality of the proposed model and application of actual bid rigging cases. Through the proposed calculation model, this study seeks to serve as a base to prevent opportunity damages for parties involved in related court cases by early resolution of disputes and relief from issues of unfair damage burdens on a particular party.

• Journal of Information Technology Services
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• v.16 no.1
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• pp.41-53
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• 2017

Recently, due to the economic recession and increase of ITO (IT Outsourcing), bidding in software industry has been recognized as more competitive and the importance of software bid evaluation for corporate selection is being increased. This study aims to analyze and prioritize influential factors in the software bid evaluation criteria which is adopted as the main evaluation model of national software businesses by Ministry of Science. The priority was developed by AHP (Analytic Hierarchy Process) through pair-wise comparison. For the analysis, this study developed analysis model for AHP and conducted survey of experts who have work experience for more than 10 years in the IT industry. As the result of analysis, weighted factors in the evaluation criteria were deduced and differences of priority factors between purchaser and bidder were investigated. The analysis showed differences of view point in the bidding process. With these results, this study suggests how to write a proposal strategically and effectively in perspective of the purchaser. It is expected that priority factors will be adopted in strategic proposals in both bidder and purchaser. For purchaser, the priority will be adopted to select reliable bidder. So, we expect that the priority factors will be used to get more values for both bidder and purchaser in their business atmosphere.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.479-487
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• 2013

State Highway Agencies (SHAs) have started utilizing cost-plus-time bidding (A+B bidding) since Federal Highway Agency (FHWA) declared it operational on May 4, 1995. Although this technique has successfully accelerated many projects by incorporating construction time in the bidding competition, a framework to illustrate the interactions of incentive/disincentive (I/D) rates on the competitiveness of contractors participating in the bid competition is yet to be developed. In a previous research, authors indicated that for each bid competition there is an efficient cap for I/D rates which are dictated by the capabilities of contractors in project acceleration. However, the results of previous study were based on the assumption that there is a statistically significant relationship between cost and time. In this study, the entire cost-plus-time projects implemented by the Oklahoma Department of Transportation (ODOT) were investigated. Then the significance of relationship between cost and time were analyzed for each contractor utilizing Analysis of Variance (ANOVA) technique, and the price-time function of each contractor was determined by regression analysis. The results of the analysis indicate that there is a significant relationship between cost and time for the majority of contractors. However, a quadratic relationship is not always significant and for some contractors a linear price-time relationship is significant. The results of this project can be used not only by ODOT to optimize the incentive/disincentive rates but also by contractors to determine the most competitive strategies of other bid participants.