Analysis of First Price Sealed Bidding (FPSB) using game theory
By: by Suat Tozendemir
Contributors: Naval Postgraduate School (U.S.) 
Publisher: Naval Postgraduate School; Available from National Technical Information Service
Published: 1997
Place of publication: Monterey, Calif; Springfield, Va
Language: eng
Number of pages: 291
Description: This thesis analyzes the First Price Sealed Bidding (FPSB) procurement method using computer simulations.      The First Price Sealed Bidding is a static Bayesian Game with incomplete information. These games have a      well defined Bayesian Nash equilibrium. Using this theory, this study found the bidders' equilibrium      strategies. The equilibrium strategy is the strategy that maximizes bidders' profit simultaneously. Some      assumptions have been made to be able to construct a model for the FPSB. Then, the model was      transformed into computer simulation code using Visual Basic programming language. Two different      simulation programs used to experiment with several scenarios under uniform and triangular production cost      distributions. The simulation showed the bidders' behavior and identified factors affecting the bidders'      decision while preparing their bids. The most influential factors found to be production cost distributions and      number of bidders. Concluding observations concerning both buyers and bidders present the results derived      from the analysis of experiments.
Notes: "December 1997."

Thesis advisor(s): Katsuaki L. Terasawa, Mark W. Stone.

Thesis (M.S. in Management) Naval Postgraduate School, December 1997.

Includes bibliographical references (p. 289)

Approved for public release; distribution unlimited.

Also available online.

Mode of access: World Wide Web.

System requirements: Adobe Acrobat reader.

Turkish Navy author.

dk/dk cc:9116 6/10/98.