On Multiplicative Bidding Strategies
- 1 June 1980
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Operations Research
- Vol. 28 (3-part-i) , 570-575
- https://doi.org/10.1287/opre.28.3.570
Abstract
Some models of competitive bidding consider only bidding strategies in which the bid is a preselected multiple of an estimate of the value (or cost) of the subject of the auction. This paper examines the effect of such a restriction on these models. In order to do so, it is necessary to show that the ratio of two positive random variables (e.g., a cost and a cost estimate) cannot be statistically independent of each of them unless the ratio is always the same.Keywords
This publication has 0 references indexed in Scilit: