IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2012060040397.html
   My bibliography  Save this article

Decision making in goverment tenders: A formalized qualitative model

Author

Listed:
  • Štěpán Veselý

    (Ústav ekonomiky, Fakulta podnikatelská, Vysoké učení technické v Brně, Kolejní 4, 612 00 Brno, Česká republika)

  • Mirko Dohnal

    (Ústav ekonomiky, Fakulta podnikatelská, Vysoké učení technické v Brně, Kolejní 4, 612 00 Brno, Česká republika)

Abstract

The paper presents a simple formalized qualitative model of government tenders (GTs). Qualitative models use just three values: Positive/Increasing, Zero/Constant and Negative/Decreasing. Such quantifiers of trends are the least information intensive. Qualitative models can be useful, since GT evaluation often includes such goals as e.g. efficiency of public purchasing, and variables as e.g. availability of relevant information or subjectivity of judgment, that are difficult to quantify. Hence, a significant fraction of available information about GTs is not of numerical nature, e.g. if availability of relevant information is decreasing then efficiency of public purchasing is decreasing as well. Such equationless relations are studied in this paper. A qualitative model of the function F(Goals, Variables) is developed. The model has four goal functions, eight variables, and 39 equationless relations. The model is solved and seven solutions, i.e. scenarios are obtained. All qualitative states, including first and second qualitative derivatives with respect to time, of all variables are specified for each scenario. Any unsteady state behavior of the GT model is described by its transitional oriented graph. There are eight possible transitions among seven scenarios. No a priori knowledge of qualitative modeling is required on the reader's part.

Suggested Citation

  • Štěpán Veselý & Mirko Dohnal, 2012. "Decision making in goverment tenders: A formalized qualitative model," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(4), pages 397-406.
    • Handle: RePEc:mup:actaun:actaun_2012060040397
    DOI: 10.11118/actaun201260040397
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201260040397.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201260040397.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201260040397?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Talluri, Srinivas & Narasimhan, Ram, 2003. "Vendor evaluation with performance variability: A max-min approach," European Journal of Operational Research, Elsevier, vol. 146(3), pages 543-552, May.
    2. Calvo, Guillermo A & Wellisz, Stanislaw, 1978. "Supervision, Loss of Control, and the Optimum Size of the Firm," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 943-952, October.
    3. Lorentziadis, Panos L., 2010. "Post-objective determination of weights of the evaluation factors in public procurement tenders," European Journal of Operational Research, Elsevier, vol. 200(1), pages 261-267, January.
    4. Evenett, Simon J. & Hoekman, Bernard M., 2005. "Government procurement: market access, transparency, and multilateral trade rules," European Journal of Political Economy, Elsevier, vol. 21(1), pages 163-183, March.
    5. Tadelis, Steven, 2012. "Public procurement design: Lessons from the private sector," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 297-302.
    6. Long, Ngo Van & Stähler, Frank, 2009. "A contest model of liberalizing government procurements," European Journal of Political Economy, Elsevier, vol. 25(4), pages 479-488, December.
    7. Celentani, Marco & Ganuza, Juan-Jose, 2002. "Corruption and competition in procurement," European Economic Review, Elsevier, vol. 46(7), pages 1273-1303, July.
    8. repec:hal:journl:hal-02501107 is not listed on IDEAS
    9. Aaditya Mattoo, 1996. "The Government Procurement Agreement: Implications of Economic Theory," The World Economy, Wiley Blackwell, vol. 19(6), pages 695-720, November.
    10. Xiaomei Deng & Qian Tian & Shizhao Ding & Bob Boase, 2003. "Transparency in the Procurement of Public Works," Public Money & Management, Taylor & Francis Journals, vol. 23(3), pages 155-162, July.
    11. Xeni Dassiou & Jon Stern, 2009. "Infrastructure Contracts: Trust and Institutional Updating," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 35(1), pages 171-216, September.
    12. Jonathan Edwards & Simon Wolfe, 2005. "Compliance: A review," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 13(1), pages 48-59, February.
    13. Mougeot, Michel & Naegelen, Florence, 2005. "A political economy analysis of preferential public procurement policies," European Journal of Political Economy, Elsevier, vol. 21(2), pages 483-501, June.
    14. Jakrapong Pongpeng & John Liston, 2003. "TenSeM: a multicriteria and multidecision-makers' model in tender evaluation," Construction Management and Economics, Taylor & Francis Journals, vol. 21(1), pages 21-30.
    15. Auriol, Emmanuelle, 2006. "Corruption in procurement and public purchase," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 867-885, September.
    16. Nataša Pomazalová & Zbyšek Korecki, 2011. "Evaluation of tendered prices of natural mineral water, juice and non-alcoholic beer (public procurement research)," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(4), pages 233-240.
    17. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    18. Stéphane Straub, 2009. "Regulatory Intervention, Corruption and Competition," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 35(1), pages 123-148, September.
    19. Greenstein, Shane, 1993. "Procedural Rules and Procurement Regulations: Complexity Creates Trade-offs," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 9(1), pages 159-180, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pablo Ballesteros-P�rez & Martin Skitmore & Eugenio Pellicer & M. Carmen Gonz�lez-Cruz, 2015. "Scoring rules and abnormally low bids criteria in construction tenders: a taxonomic review," Construction Management and Economics, Taylor & Francis Journals, vol. 33(4), pages 259-278, April.
    2. Arnold, Ulli & Neubauer, Joerg & Schoenherr, Tobias, 2012. "Explicating factors for companies’ inclination towards corruption in Operations and supply chain management: An exploratory study in Germany," International Journal of Production Economics, Elsevier, vol. 138(1), pages 136-147.
    3. Long, Ngo Van & Stähler, Frank, 2009. "A contest model of liberalizing government procurements," European Journal of Political Economy, Elsevier, vol. 25(4), pages 479-488, December.
    4. Roberto Burguet & Juan-José Ganuza & José García-Montalvo, 2016. "The Microeconomics of Corruption. A Review of Thirty Years of Research," Working Papers 908, Barcelona School of Economics.
    5. Jiancai Pi, 2021. "An investigation of seeming favoritism in public procurement," Manchester School, University of Manchester, vol. 89(1), pages 128-137, January.
    6. Chandel, Shivangi & Sarkar, Shubhro, 2023. "Corruption in multidimensional procurement auctions under asymmetry," Economic Modelling, Elsevier, vol. 120(C).
    7. Gauthier, Bernard & Goyette, Jonathan & Kouamé, Wilfried A.K., 2021. "Why do firms pay bribes? Evidence on the demand and supply sides of corruption in developing countries," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 463-479.
    8. Sümeyra Atmaca, 2020. "Application Period in Reverse Auctions," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/993, Ghent University, Faculty of Economics and Business Administration.
    9. Dávid-Barrett, Elizabeth & Fazekas, Mihály, 2020. "Anti-corruption in aid-funded procurement: Is corruption reduced or merely displaced?," World Development, Elsevier, vol. 132(C).
    10. Libor Dušek & Andreas Ortmann & Lubomír Lízal, 2005. "Understanding Corruption and Corruptibility Through Experiments," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(2), pages 147-162.
    11. Serena Brianzoni & Raffaella Coppier & Elisabetta Michetti, 2012. "A Growth Model with Corruption in Public Procurement: Equilibria and Policy Implications," Working Papers 68-2012, Macerata University, Department of Finance and Economic Sciences, revised Sep 2015.
    12. Wang, Hong, 2020. "Quality manipulation and limit corruption in competitive procurement," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1124-1135.
    13. Kang, Sungwon & Kim, Daehwan & Kim, Geonhyeong, 2023. "Corporate entertainment expenses and corruption in public procurement," Journal of Asian Economics, Elsevier, vol. 84(C).
    14. Anna D’Souza & Daniel Kaufmann, 2013. "Who bribes in public contracting and why: worldwide evidence from firms," Economics of Governance, Springer, vol. 14(4), pages 333-367, November.
    15. Minbo Xu & Daniel Z. Li, 2019. "Equilibrium competition, social welfare and corruption in procurement auctions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(3), pages 443-465, October.
    16. Gen-Fu Feng & Bo Sui & Min-Yi Dong & Chun-xia Jiang & Chun-Ping Chang, 2018. "Border is better than distance? Contagious corruption in one belt one road economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1909-1928, July.
    17. Lorentziadis, Panos L., 2010. "Post-objective determination of weights of the evaluation factors in public procurement tenders," European Journal of Operational Research, Elsevier, vol. 200(1), pages 261-267, January.
    18. Ufere, Nnaoke & Gaskin, James & Perelli, Sheri & Somers, Antoinette & Boland, Richard, 2020. "Why is bribery pervasive among firms in sub-Saharan African countries? Multi-industry empirical evidence of organizational isomorphism," Journal of Business Research, Elsevier, vol. 108(C), pages 92-104.
    19. Chiappinelli, Olga, 2020. "Political corruption in the execution of public contracts," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 116-140.
    20. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mup:actaun:actaun_2012060040397. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.