Bidding is an offer (often competitive) to set a price tag by an individual or business for a product or service or a demand that something be done.
Bidding can be performed by a person under influence of a product or service based on the context of the situation.
In the context of auctions, financial transactions on international markets, or real estate, the price offer a business or individual is willing to pay is called a bid.
Bidding is used by various economic niches for determining the demand and hence the value of the article or property, in today's world of advanced technology, the Internet is a favoured platform for providing bidding facilities; it is a natural way of determining the price of a good in a free market economy.
The process of bidding varies between different educational institutions, but overall the idea of winning places through an auction remains the same.
The Add-Drop rounds allow efficient allocation of seats left after a bidding process.
Timed bidding, on the other hand, is a separate auction altogether, which allows bidders to participate without the need to see or hear the live event.
Bidding consortia among potential competitors are the most common in public and private procurement and were used by some oil companies in U.S. auctions for offshore leases.
They may share information about the likely value of the contract based on forecasts or surveys, jointly bear fixed costs, or combine production facilities.
Mergers and joint ventures typically lead to a fewer number of competitors, thus resulting in higher prices for consumers.
Bid rigging is a form of collusion among firms intended to raise prices or lower the quality of goods or services offered in public tenders.
In spite of it being illegal, this practice costs governments and taxpayers large sums of money.
To detect bid rigging, national competition authorities rely on leniency programs.
To reduce the dependency on the external sources, COMCO (Swiss Competition Commission) decided to initiate a long-term project in 2008 to develop a statistical screening tool.
[7] This product was supposed to have the following properties: modest data requirements, simplicity, flexibility, reliable results.
Empirical papers show evidence that the price variability is lower in a collusive environment.
On the other hand, there exist more complicated econometric detection methods which require firm-specific data.