Analysis of the One-Level Sealed Bidding on Effectiveness under Different Bidding Variables

The one-level sealed bidding is studied under the circumstance of project construction in build-operate-transfer (BOT) mode, where the bidding variable is considered separately as concession term, toll per product, payment and the total revenue. A game model with incomplete information among tenderers is presented and the optimal bidding strategies of tenderers are given. When the tenderer´s construction cost belongs to uniform distribution, the optimal bidding strategy is related to his cost, the numbers of all tenderers, his relative cost coefficient, demand in unit time and so on. Furthermore, when the anticipations of market demand among the tenderers are different, the optimal bidding strategies under the above bidding variables may fail; when the operation and maintenance cost could be ignored, the bidding variable of total revenue is the best choice.