Runeson, G and Skitmore, M (1999) Tendering theory revisited. Construction Management and Economics, 17(3), pp. 285-296. ISSN 01446193
Abstract
This paper discusses the content, origin and development of tendering theory as a theory of price determination. It demonstrates how tendering theory determines prices and how it is different from game and decision theories, and that in the tendering process, with non-cooperative, simultaneous, single sealed bids with individual private valuations, extensive public information, a large number of bidders and a long sequence of tendering occasions, mere develops a competitive equilibrium. The development of a competitive equilibrium means that the concept of the tender as the sum of a valuation and a strategy, which is at the core of tendering theory, cannot be supported, and that there are serious empirical, theoretical and methodological inconsistencies in the theory.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bidding; price determination; tendering; tendering theory |
| Index terms: | bidding, number of bidders, decision theory, strategy, tendering process, price determination |
| Subjects: | tendering, decision analysis, bidding, management |
| Topics: | Procurement, Risk Management, Business Strategy |
| Descriptive scope: | 3 PCT |
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