The Theoretical Analysis and Resolving Approach of Winning the Bid with the Low-priced in the Engineering Project

摘要

Currently, the phenomenon of winning the bid with the low-priced is appeared in Chinese engineering project tender offer market. Some existing papers analyze this problem from the view point of the practice operation but the theoretical analysis is absence. In first, this paper builds the new tender offer and quoted price model considering the construction quality;secondly, because the construction quality couldn't be observed in advance by the owner, this problem is the incomplete information game. The paper analyzes the construction quality problem and adverse selection problem for the above tender offer and quoted price model. At lastly, the paper puts forward some measures to avoid the shortcoming of winning the bid with the low-priced.