The Adverse Effect Analysis of Publishing The Maximum Control Price in Construction Bidding

摘要

A great deal of literatures suggested that control price should be established in bidding. But for the application of the maximum control price, whether it should be published or not in bidding have no unified view so far. With the game theory, this paper analyzes the adverse effects of the tenderee publishing the maximum control price in the firstprice sealed bidding mechanism. The results showed that stipulating the maximum control price to be announced before the bid opening will lead to the improvement of the whole tender offer. Finally, the winning tenderer's offer is always greater than the normal offer, which would harm the tenderee's benefit.