The Optimal Design for Cost Budget in Bidding Marketing

Carrying out the bid system has made a deeply effect on economical order and benefit of investment, but there are also some questions to be solved. The bid market is not healthy enough; the development of the bid system is not perfect and the legislation to standardize the act ion of bid needs to strengthen. This paper firstly defines the construction project bidding transaction cost, and analyses the composition of construction project transaction costs and characteristics. Then the bidding and contract in is combined the purchasing, give the best compensating cost contract based on bidding, according to the game theory and the principal agent theory.