Construction bidding and the winner's curse

مرکز و کتابخانه مطالعات اسلامی به زبان های اروپایی

منو

" Construction bidding and the winner's curse "
Muaz O. Ahmed Truax, Dennis D.; El-adaway, Islam H.

Document Type	:	Latin Dissertation
Language of Document	:	English
Record Number	:	803404
Doc. No	:	TL48191
Call number	:	‭1679462480;‮ ‬1586941‬
Main Entry	:	Terndrup, Alison P.
Title & Author	:	Construction bidding and the winner's curse\ Muaz O. AhmedTruax, Dennis D.; El-adaway, Islam H.
College	:	Mississippi State University
Date	:	2015
Degree	:	M.S.
field of study	:	Civil and Environmental Engineering
student score	:	2015
Page No	:	152
Note	:	Committee members: Coatney, Kalyn T.; Martin, James L.; White, Thomas D.
Note	:	Place of publication: United States, Ann Arbor; ISBN=978-1-321-69751-3
Abstract	:	In the construction industry, the winner's curse occurs when the winning contractor has underestimated the project's true cost. Using a game and auction theory approach, this study aims to analyze - and potentially reduce - industry exposure to the effects of the winner's curse in construction bidding. A simulation model for single and multi-stage bidding processes was developed and analyzed an actual dataset of California Department of Transportation projects. The majority of general contractors and sub-contractors suffer from the winner's curse in both single and multi-stage bidding environments. The multi-stage bidding environment incurs more losses than the single-stage bidding environment. Through learning from past experiences though, the multi-stage bidding environment provides contractors with better opportunity to avoid the winner's curse. Finally, it was shown that the symmetric risk neutral Nash equilibrium optimal bid function provides the contractors with a tool to avoid the winner's curse and gain strategic positive profits.
Subject	:	Management; Civil engineering
Descriptor	:	Social sciences;Applied sciences;Auction theory;Construction bidding;Game theory;Winner's curse
Added Entry	:	Truax, Dennis D.; El-adaway, Islam H.
Added Entry	:	Civil and Environmental EngineeringMississippi State University