IMPACT OF RECENT EXPERIENCES ON DEVELOPERS � LAND BIDDING BEHAVIOURS

Abstract

This dissertation seeks to understand the impact of previous recent experiences of developers on their subsequent bidding behaviours. Specifically, recent bids submitted by developers were assigned characteristics in order to quantify their varying experiences. The effects of these recent experiences were then tested against the developers’ probability of winning the subsequent bid, which acted as a proxy to see whether developers had adopted aggressive bidding strategies or changed their bidding behaviours. Empirical evidence revealed that developers who narrowly lost the previous bids, showed tendencies to be more aggressive in their future tenders. On the contrary, developers who won recent tenders were more likely to lose subsequent bids. Robustness tests further presented the importance of time that had elapsed between the previous and subsequent bids, where the length of such duration had a negative relationship with the vividness of an experience. Finally, the results of the study suggest developers show certain behavioural tendencies in response to past outcomes, introducing the impact of psychological aspects on developers’ bidding decisions.