ECONART advises bid candidates in many industries. We analyze tenders in game theory tools and create a strategic advantage for our customers over the other bidders, enabling them to submit profitable offers for them, with a higher probability of winning the tender. Our expertise in designing tenders enables us to understand deeply the risks inherent in tenders, manage them and use the tender laws for the benefit of our customers. We combine our knowledge of game theory with the experience gained to build a proposal strategy and accompany our clients to make an optimal offer for them.
The 5-step process for building an optimal proposal
Understand the rules of the game
Optimal bid structure
Strategic analysis
Scenario analysis and risk analysis
Support all the way
A necessary condition for success in the game is to understand the rules of the game. The outcome of the auction depends to a large extent on the rules of the tender and it is important to understand how different parameters affect the results. At this stage it is possible to identify key factors for success in the tender, which can help to formulate an optimal strategy. Our advice at an early stage enables, if necessary, to influence the rules of the tender by contacting the tender editor as part of the bidder's questions.
We provide analytical tools that enable the bidders to utilize the information available to them regarding the characteristics of the tender in order to improve their bid while maintaining high profitability. Whether it is tenders where there is a demand for a number of items or tenders that incorporate additional criteria, such as quality and quality of service, we calculate the optimal bid structure by using appropriate mathematical tools. We assess the risks inherent in the chosen strategy and hedge them through appropriate risk management models.
How much should you not bid?
Before deciding on the optimum bid, you should first find out how much you can not offer. We assess and analyze the value of winning the tender and identify factors of uncertainty in order to prevent our customers from falling victim to the winner's curse - winning a loss.
In order to develop a good bidding strategy for the auction, we align the competitive environment with a systematic methodology for conducting market research. We also analyze the interaction between the bidders in the tender from the point of view of game theory and create a prediction of the behavior of the other bidders.
Tenders is a field of game theory that provides powerful tools for predicting bidding behavior.
Complex tenders
Tenders can be simultaneous, such as envelope auctions that open simultaneously or dynamically, where proposals are submitted in a sequential order; The auction may be uniting, with one winner, or split, with the possibility of several winners. These are games of a different nature - the information and strategic actions available to players in each case are very different, and require analysis of a different kind.
We use computerized tools that enable multiple scenarios to be run using simulations (Monte Carlo) to assess the risks inherent in the various bid strategies. This stage enables identification and control of the risk factors and assess their impact, and provides decision-support tools for managing the engagement on the day after winning the tender.
At the end of our analysis, we provide our customers with a "navigation system" that includes complete information about the benefits and risks inherent in key bid strategies and dependence on how different scenarios develop and their likelihood. In dynamic tenders, it is important to analyze the development of bids during the tender and to extract important information from them. Our skilled and experienced staff can be present in the pricing process to ensure smooth operation and implementation of optimal bid strategies.