The Key Points on Lowest Bidding Based on Game Theory

Abstract

Lowest bidding is widely used in international construction contracting system, and is accepted in China since it's introduced several years ago. However, many unambiguous operations concerning it happen again and again, which has posed great negative impacts on some constructions. This paper discussed the evidence of "lowest bidding", the pricing system of "lowest bidding", and the management of construction under "lowest bidding" policy. Some suggestions were given to improve the healthy development in China's "lowest bidding" operation.