Price Determination in Public Procurement: A Game Theory Approach

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F15%3A00083114" target="_blank" >RIV/00216224:14560/15:00083114 - isvavai.cz</a>

Result on the web

<a href="http://www.vse.cz/efaj/137" target="_blank" >http://www.vse.cz/efaj/137</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Price Determination in Public Procurement: A Game Theory Approach

Original language description

The article examines mechanism of bid price determination in public procurement by individual tenderers. A game theory approach is used to analyse this process. Firstly, a simple model with two firms illustrates the influence of expected opponent?s decision in bid price setting. Assumptions are released subsequently and a game theory based model describes price determination under assumption of expected profit maximization. It is shown that the bid price depends on the costs associated with the performance of the contract and the expected number of bidders. The relationship between the amount of the bid price and the number of bids is also confirmed on the findings of several empirical studies that are quoted.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2015

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

European Financial and Accounting Journal

ISSN

1802-2197

e-ISSN

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Volume of the periodical

10

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

49-62

UT code for WoS article

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EID of the result in the Scopus database

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