Please use this identifier to cite or link to this item:
|Title:||Understanding risky bidding: A prospect-contingent perspective|
|Citation:||Hartono, B., Yap, C.M. (2011-06). Understanding risky bidding: A prospect-contingent perspective. Construction Management and Economics 29 (6) : 579-593. ScholarBank@NUS Repository. https://doi.org/10.1080/01446193.2011.569733|
|Abstract:||A descriptive research school of thought provides the context for an examination of contractors' risky bid markup decisions in a competitive bidding setting. Grounded in prospect theory and the one-reason decision model, a contingency-based theoretical model was developed to explain and to predict bid mark-up decisions in light of four identified determinants, namely: perceived 'rate of returns', 'revenues', 'project backlogs' and 'project strategic importance'. Three scenarios according to this model were verified by means of a self-administered survey in the Singapore construction industry. By using cluster analysis, five groups of bidders with distinctive bid profiles were identified and the associated bid mark-ups were calculated. The emerging groups provide an empirical illustration on how the theoretical model is utilized. For instance, one group of bidders (n = 16) demonstrates a scenario of the model in which participating bidders had considered the reported project bid as having high strategic importance to their organizations and hence made aggressive, low bid mark-ups. The theoretically grounded framework could be used by contractors to improve their own bidding strategy in anticipating the likely behaviour of the competitors. © 2011 Taylor & Francis.|
|Source Title:||Construction Management and Economics|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Nov 8, 2018
WEB OF SCIENCETM
checked on Nov 12, 2018
checked on Oct 26, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.