Bidding Task Characteristics Influence on the Bidders’ Risk Attitude

Chunmei Wang (), Rui Zhuo () and Bingbing Xu ()
Additional contact information
Chunmei Wang: Tianjin University
Rui Zhuo: Tianjin University
Bingbing Xu: Tianjin University

A chapter in LISS 2014, 2015, pp 753-758 from Springer

Abstract: Abstract We select the staff from the top ten construction enterprises of China who have ever involved in the bidding as the subjects in an experiment. In the experiment, the subjects are required to bid for a domestic engineering project in order to investigate the impact of the magnitude of probability of winning and the magnitude of outcome on the bidders’ risk attitudes. Results show that, for Chinese bidders, no matter gain situations or loss situations, they are risk seeking in the domain of high winning probability. The bidders are risk seeking in the domain of small probability of gain whereas they are risk averse in the domain of small probability of loss. This conclusion is not consistent with Prospect Theory. At the same time, different magnitudes of probability of winning and magnitudes of outcome have different impacts toward the risk attitude.

Keywords: Risk attitude; Probability of winning; Magnitude of outcome; Task characteristic; Bidder (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-662-43871-8_108

Ordering information: This item can be ordered from
http://www.springer.com/9783662438718

DOI: 10.1007/978-3-662-43871-8_108

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().