| Article ID: | iaor20026 |
| Country: | United Kingdom |
| Volume: | 19 |
| Issue: | 6 |
| Start Page Number: | 313 |
| End Page Number: | 324 |
| Publication Date: | Aug 2001 |
| Journal: | International Journal of Project Management |
| Authors: | Caron F., Perego A., Cagno E. |
| Keywords: | simulation: applications, decision theory: multiple criteria, analytic hierarchy process |
The paper describes a simulation approach based on the Analytic Hierarchy Process to assess the probability of winning in a competitive bidding process where competing bids are evaluated on a multiple criteria basis, assuming the point of view of the contractor. The model allows the contractor to define his bidding strategy on the basis of the information currently available concerning the owner, the competitions, and the profile of his own bid. The model is applied to an auction, where a number of contractors compete for the design and construction of a process plant in a developing country.