Download pdf
Game Theory in Tendering: Analyzing Bidder and Tenderer Strategies
- 1 Rosedale global high school, Unit 55, Courtyard 55, Guishui South Street, Yanqing District, Beijing, China
* Author to whom correspondence should be addressed.
Abstract
In modern society, bidding and tendering have become an integral part of economic activities and are increasingly attracting public attention. This article innovatively combines game theory with bidding practice. Through extensive collection and analysis of network resources and in-depth research on real cases, it aims to deeply analyze the internal logic of the bidding mechanism and optimize bidding through the perspective of game theory. Tender design to significantly improve resource allocation efficiency and market fairness. Finally, this article emphasizes that game theory can deepen the understanding of bidding dynamics, optimize strategies, highlight the value of information transparency and long-term cooperation, propose policy and mechanism improvement suggestions, and promote a fair and efficient market environment. This article underlines the transformative potential of game theory as a tool for revealing hidden inefficiencies and corruption within bidding processes. By advocating for policies that foster open and transparent tender practices, it seeks to empower stakeholders to make more informed decisions, thereby nurturing a culture of integrity and ethical competition in markets worldwide.
Keywords
Bidder, Tenderer, Game Theory, Optimize bidding
[1]. Fundamentals of game theory. Management Science, 35(1), 50. Optimal bidding and quotation model based on game theory. Available at: https://xuebao.hebust.edu.cn/hbkjdx/article/abstract/20100302. (Accessed: 21 July 2024).
[2]. Fortune China. (2021). US government cancels Microsoft cloud computing contract worth up to $10 billion. Retrieved from https://www.fortunechina.com/keji/c/2021-07/07/content_393255.htm
[3]. Laryea, S., & Hughes, W. (2011). Risk and price in the bidding process of contractors. Journal of Construction Engineering and Management, 137(4), 248-258.
[4]. Ma Jun, Qiu Wanhua, Zhang Hao. A Class of Decision-Making Models of Bidding Competitive System and Application[J]. Chinese Journal of Management Science, 1999, (4): 1-5.
[5]. Ma Yong. (2018). Game model of construction project bidding based on game theory. Green Technology, 2018 (8), 89. DOI: CNKI: SUN: LVKJ.0.2018-08-089
[6]. OFweek Cloud Computing Network. (2022, December). US Federal Government Cloud Computing Contract (JEDI) Bidding Case. Retrieved from https://cloud.ofweek.com/news/2022-12/ART-178800-8120-30581598.html
[7]. Osborne, MJ (2004). An introduction to game theory (Vol. 3, No. 3). New York: Oxford university press.
[8]. S.H. Jiang. (2024). Risk assessment and management in project bidding process. Engineering Management, 5(6), 202-204.
[9]. T'Syen, K. (2008). Market Power in Bidding Markets: An Economic Overview. World Competition, 31, 37.
[10]. Watt, DJ, Kayis, B., & Willey, K. (2010). The relative importance of tender evaluation and contractor selection criteria. International journal of project management, 28(1), 51-60.
[11]. Yang Xiaoguang, Li Sanxi, Cao Zhigang, Cui Zhiwei, Qiao Xue, Weng Xi, ... & Zhang Boyu. (2022). Game Theory Foundations of Digital Economy
Cite this article
Cai,Y. (2024). Game Theory in Tendering: Analyzing Bidder and Tenderer Strategies. Advances in Economics, Management and Political Sciences,128,67-71.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).