Using Simulation to Investigate Factors in Competitive Bidding


  • Grover Wm. Rodich


The following study was made to measure the effects that certain bidding environmental variables have on long-run expected profits when measured over a simulated time period. The four variables of interest were: 1) tactic used; 2) number of competitors; 3)stability of competitors; and 4) average level of competitors’ bids. A four-way ANOVA test was used to reveal the levels of variables and combinations of variables that are significant. Simulation was used as a tool for observing the dynamic behavior of bidding’s complex interactive system. --Combining Experiential Learning and Management Assistance