Research and Application of Online Biding Procurement Model Based on Game Theory

Procurement costs are one of the main elements of enterprise management. It will affect corporate profits and return on assets directly, so it is very important to low procurement costs. This paper first outlines online bidding procurement process based on game theory, and the resulting Nash equilibrium solution. Then based on this, the model of online bidding procurement is analyzed from four aspects (openness, bidding incentives, process control, post-evaluation). The model has been applied in Baosteel, and has a good result.