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Game Analysis Of China's Bidding Price Determination Mechanism

Posted on:2002-09-13Degree:MasterType:Thesis
Country:ChinaCandidate:J DaFull Text:PDF
GTID:2206360032454762Subject:National Economics
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Since the second half of the twentieth century, regional economy, economic integration and trade liberalization have become the mainstream of world economy. In this circumstance, offer-bid, originated from a trading method of government purchase 200years ago, plays more and more important roles in thee development of global economy with the features of openness, fairness and justice. Along with the development of offer-bid, there are several outstanding trends: first, offer-bid has become the main purchase approach for governments in the world. Both in developed and developing countries, government purchase put a direct influence on economy. Since government spending stems from revenues and governments ought to be responsible for taxpayers and supervised by them, transparency and justice are basic conditions of purchasing. Hence, the World Trade Organization takes offer-bid as the most important method of government purchase. Second, offer-bid has become an effective way in the loan implementation supervised by international financial organization. International financial organizations, typical as the World Bank, have accumulated much experience in the second half of the century, which becomes an important impulse to the world economy. Third, offer-bid has become an international practice. In the stream of trade liberalization, various kinds of trade barriers hold back the development of trade liberalization. With openness fairness, justice and organization, offer-bid becomes a code of international trade.The fundamental reason shy offer-bid plays an important role in the world lies in the function of resource optimization. On surface, offer-bid is a trading activity. However, why only if the principals apply this kind of activity can they determine a balanced price of high efficiency? That is because offer-bid is essentially a market economic system of resource optimization. Presently, China is building up a society governed by law on the basis of socialist economy. Offer-bid, as a market economic system of resource optimization, has achieved more and more important status and role. From the viewpoint of new system economics, T·W·Schulz defines the system as a series of rules to restrain people's behaviors, in order to reduce the uncertainty of the environment, reduce the trading cost, protect property right, and improve producing activities. The system is not only a public item, but also a rare factor. It has following functions: reduce the trading cost; serve the economy; create conditions for cooperation; provide incentive mechanism; system innovation benefits the internalization of outer interests. In the present world of economic integration, why the gap between the developed countries and developing countries tends to enlarge instead of reduce while capital, technology, labor and information move more freely? Why the productivity is higher in developed countries while people in those countries are not more intelligent than the Chinese? That is because technology can be transferred, so is capital and labor. Nevertheless, the systematic factors of economic development are hard to be transferred. The Developing countries cannot follow certain system from the developed countries mechanically. The gap between the developing countries and developed countries are mainly the gap between different system. A economy is not the simple accumulation of productive elements, such as land, labor, capital and technology. Only under certain system can these elements exert their function. Though moral suggestion is important, it is not a basic way to improve the cooperation among people. The key is that the perfection of various market economic system, such as offer- bid, enables cooperation among people become the best choice for individuals with rational sense, and then improve economic efficiency.The application of offer-bid in western countries and other developing countries fully reflects the ideas above. The practice in our country is no less than the best interpretation of these concepts. On one h...
Keywords/Search Tags:offer-bid pricing mechanism gaming theory system innovation technological innovation
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