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Analysis of the distribution of the number of bidders in construction contract auctions

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journal contribution
posted on 2018-04-30, 13:07 authored by Pablo Ballesteros-Perez, M. Carmen Gonzalez-Cruz, Jose Luis Fuentes-Bargues, Martin Skitmore
© 2015 Taylor & Francis. The number of bidders, N, involved in a construction procurement auction is known to have an important effect on the value of the lowest bid and the mark-up applied by bidders. In practice, for example, it is important for a bidder to have a good estimate of N when bidding for a current contract. One approach, instigated by Friedman in 1956, is to make such an estimate by statistical analysis and modelling. Since then, however, finding a suitable model for N has been an enduring problem for researchers and, despite intensive research activity in the subsequent 30 years, little progress has been made, due principally to the absence of new ideas and perspectives. The debate is resumed by checking old assumptions, providing new evidence relating to concomitant variables and proposing a new model. In doing this and in order to ensure universality, a novel approach is developed and tested by using a unique set of 12 construction tender databases from four continents. This shows the new model provides a significant advancement on previous versions. Several new research questions are also posed and other approaches identified for future study.

Funding

This research study was funded in Chile by CONICYT under the Fondecyt Program Initiation into Research 2013 (project number 11130666).

History

School

  • Architecture, Building and Civil Engineering

Published in

Construction Management and Economics

Volume

33

Issue

9

Pages

752 - 770

Citation

BALLESTEROS-PEREZ, P. ...et al., 2015. Analysis of the distribution of the number of bidders in construction contract auctions. Construction Management and Economics, 33(9), pp. 752-770.

Publisher

© Taylor and Francis

Version

  • AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2015

Notes

This is an Accepted Manuscript of an article published by Taylor & Francis in Construction Management and Economics on 16 Oct 2015, available online: https://doi.org/10.1080/01446193.2015.1090008

ISSN

0144-6193

eISSN

1466-433X

Language

  • en