Study on Estimating Bidding Rivals’ Average Tender Offer under the Condition of the Stochastic Compound Base Price

DOI

10.2991/emeeit-15.2015.26How to use a DOI?

Keywords

Construction Project, Stochastic Compound Base Price, Tender Offer, Average Tender Offer Estimation

Abstract

The chance of acceptance of the bid and bid winner’s profit margins is to some extent determined by tender offer under the condition of the stochastic compound base price. Thus estimating bidding rivals’ average ten-der offer becomes a key issue of the project bidders. Taking maximum probability of winning bid as the main object of studying, this article considers the standard form of the stochastic compound base price bid evaluation, and constructs an estimating model of bidding rivals’ average tender offer through improving and integrating the existing model. Then method of probability theory is applied to solve the model and bidding rivals’ average tender offer is obtained. The results of this study solve to a certain extent stochastic problem in theoretical model of optimal average tender offer, as well as provided a little enlightenment about estimating bidding rivals’ average tender offer under the condition of the stochastic compound base price.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jing Zhao
AU  - Yilin Yin
PY  - 2015/11
DA  - 2015/11
TI  - Study on Estimating Bidding Rivals’ Average Tender Offer under the Condition of the Stochastic Compound Base Price
BT  - Proceedings of the 2015 International conference on Engineering Management, Engineering Education and Information Technology
PB  - Atlantis Press
SP  - 125
EP  - 130
SN  - 2352-538X
UR  - https://doi.org/10.2991/emeeit-15.2015.26
DO  - 10.2991/emeeit-15.2015.26
ID  - Zhao2015/11
ER  -