RECURRENT COMPETITIVE BIDDING

In this review the approaches will be considered under four headings; basic probabilistic approaches, game theoretic approaches, probabilistic strategy approaches and non-price approaches. In the next sections the review concentrates on models that have been applied to the suppliers' problem of selecting a bid price from the cost estimate that they have calculated. This problem is virtually identical to that of a customer who is competing against other customers to purchase some desirable object from a sole supplier who invites bids for the object. The best known example of this is a government auction of drilling rights on tracts of land or sea to oil companies.