Stanovení nabídkových cen ve veřejných zakázkách: simulace

Price Determination in Public Procurement: Simulation

Martin Schmidt

Politická ekonomie, 2016, vol. 2016, issue 5, 541-558

Abstract: The article examines a mechanism of bid price determination in public procurement by individual tenderers. An auction model based on game theory, which maximizes expected profit of a firm bidding for public contract, is used to analyse this process. Firm within the model decides by comparing expected profit and transaction costs associated with submitting the bid whether to submit the bid or not. Furthermore, the article analyzes empirical data on public works contracts in the field of construction and reconstruction of wastewater treatment plants in the Czech Republic. The probability distribution of bid prices submitted by individual firms is mainly examined on these data. Based on the presented model and some finding from the data, a simulation of sequential biddings is executed consequently in which individual firms in their decision making use available data on submitted bids from the previous contracts.

Keywords: simulation; Public Procurement; competitive bidding; bids; bid prices (search for similar items in EconPapers)
JEL-codes: D44 H57 (search for similar items in EconPapers)
Date: 2016
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.1087.html (text/html)
http://polek.vse.cz/doi/10.18267/j.polek.1087.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2016:y:2016:i:5:id:1087:p:541-558

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.1087

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().