By Topic

An Investigation of Two-Person Competitive Bidding Strategies

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)

In a competitive economy many a firm finds itself caught in the middle of a cost-price squeeze. One approach to this problem is to reduce costs as much as possible. Another approach is to obtain the best prices for its products. This paper is concerned with the competitive aspects of bidding or pricing policies. The best course of action for a person in competition depends on what he expects his competitors to do, and vice versa¿interdependent decision. The analysis and examples illustrate the importance of knowing his own and, as much as it is legally permissible, to know of his competitor's relative costs, and also his competitors' bidding or pricing policies. The analysis in this paper is centered on a two-person deterministic competitive bidding game, where in practice each person has a nonlinear incremental cost matrix.

Published in:

Systems, Man and Cybernetics, IEEE Transactions on  (Volume:SMC-4 ,  Issue: 1 )