Abstract
Winner determination in current auctions is often performed separately by two groups: the technical expert group and the business expert group. In general, there is a strong negative correlation between technical and business attributes, and it will cause antagonistic feelings and noncooperative behaviors between the two groups under the premise of bounded rationality. First, this paper constructs a game model between the management department and experts and analyzes the conditions for achieving stable equilibrium solutions. Then, we analyze the evolutionary paths and the influencing factors of relevant behaviors based on evolutionary game theory, which reveals the influence from the individual to groups. Finally, to systematically and quantitatively study bid evaluation behaviors, a simulation system based on MATLAB GUI shows the influences on the evolutionary results as the initial conditions and decision parameters change. The study makes positive contributions to the management of bidding evaluations to improve the fairness of the bid evaluation mechanism.
Highlights
Auctions are a basic mechanism for trading that are widely used in contemporary economies
The bid evaluation process is a key part in reserve auctions, and the winner determination results will directly affect the quality of centralized procurement for large enterprises and administrations
Considering the bounded rationality of bid evaluation experts and management departments, we will study the behaviors of experts and management departments based on evolutionary game theory (EGT)
Summary
Auctions are a basic mechanism for trading that are widely used in contemporary economies. The participants do not know others’ strategies in each bid evaluation process They will consider personal preferences more in decision-making. Considering the bounded rationality of bid evaluation experts and management departments, we will study the behaviors of experts and management departments based on evolutionary game theory (EGT). Bid evaluation experts and management departments have multiple participants in each process. Based on the premise of bounded rationality, decision-making is an evolutionary game process for bid evaluation experts and administrative departments. To improve the fairness of the bid evaluation process and to enhance the management level, based on evolutionary game theory, we make the following contributions: 1) We establish an evolutionary game model and theoretically study the existence conditions and evolution rules of evolutionary stable strategies (ESSs), which contributes to analyzing the behaviors of referee experts.
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