ERIC Number: ED102730
Record Type: RIE
Publication Date: 1973-Jan
Reference Count: 0
Uncertain Costs in Competitive Bidding. Paper No. 384.
Brown, Keith C.
Competitive bidding has recently received considerable attention in the literature of economics and operations research. Unfortunately, the classic formulation of the problem developed by Friedman and still expounded (Stark and Mayer) can lead to an incorrect estimate of the expected profit for a bidder when uncertainty about the cost of fulfilling the contract exists. The purpose of this paper is to point out the deficiency in the formulation and to indicate how it may be corrected. (Author)
Descriptors: Bids, Cost Effectiveness, Costs, Evaluation Methods, Mathematical Models, Operations Research
Secretary of the Institute Paper Series, Krannert Graduate School of Industrial Administration, Purdue University, West Lafayette, Indiana 47907 (Paper No. 384, Free)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Purdue Univ., Lafayette, IN. Herman C. Krannert Graduate School of Industrial Administration.