### Abstract

This paper presents a method by which the probability of winning in the competitive bidding problem can be improved by obtaining additional information concerning a key competitor. The competitive bidding problem as suggested by Friedman consists of describing the bidding behavior of each competitor by developing a probability density function representing the distribution of the ratio of a competitor’s bid to “our” cost estimate. This static distribution for a key competitor is improved by maintaining a volume-time function on competitor k. A function relating the markup of competitor k’s static distribution function, thereby improving the calculation for the probability of winning over (defeating) competitor k. Equations for combining the probability of winning over competitor k with the probability of winning over other competitors is also presented.

Original language | English (US) |
---|---|

Pages (from-to) | 151-165 |

Number of pages | 15 |

Journal | Journal of Construction Engineering and Management |

Volume | 118 |

Issue number | 1 |

DOIs | |

State | Published - 1992 |

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### ASJC Scopus subject areas

- Strategy and Management
- Industrial relations
- Civil and Structural Engineering
- Building and Construction
- Industrial and Manufacturing Engineering

### Cite this

**Bidding strategy : Winning overkey competitors.** / Griffis, Fletcher.

Research output: Contribution to journal › Article

*Journal of Construction Engineering and Management*, vol. 118, no. 1, pp. 151-165. https://doi.org/10.1061/(ASCE)0733-9364(1992)118:1(151)

}

TY - JOUR

T1 - Bidding strategy

T2 - Winning overkey competitors

AU - Griffis, Fletcher

PY - 1992

Y1 - 1992

N2 - This paper presents a method by which the probability of winning in the competitive bidding problem can be improved by obtaining additional information concerning a key competitor. The competitive bidding problem as suggested by Friedman consists of describing the bidding behavior of each competitor by developing a probability density function representing the distribution of the ratio of a competitor’s bid to “our” cost estimate. This static distribution for a key competitor is improved by maintaining a volume-time function on competitor k. A function relating the markup of competitor k’s static distribution function, thereby improving the calculation for the probability of winning over (defeating) competitor k. Equations for combining the probability of winning over competitor k with the probability of winning over other competitors is also presented.

AB - This paper presents a method by which the probability of winning in the competitive bidding problem can be improved by obtaining additional information concerning a key competitor. The competitive bidding problem as suggested by Friedman consists of describing the bidding behavior of each competitor by developing a probability density function representing the distribution of the ratio of a competitor’s bid to “our” cost estimate. This static distribution for a key competitor is improved by maintaining a volume-time function on competitor k. A function relating the markup of competitor k’s static distribution function, thereby improving the calculation for the probability of winning over (defeating) competitor k. Equations for combining the probability of winning over competitor k with the probability of winning over other competitors is also presented.

UR - http://www.scopus.com/inward/record.url?scp=0026835212&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0026835212&partnerID=8YFLogxK

U2 - 10.1061/(ASCE)0733-9364(1992)118:1(151)

DO - 10.1061/(ASCE)0733-9364(1992)118:1(151)

M3 - Article

AN - SCOPUS:0026835212

VL - 118

SP - 151

EP - 165

JO - Journal of Construction Engineering and Management - ASCE

JF - Journal of Construction Engineering and Management - ASCE

SN - 0733-9364

IS - 1

ER -