Simulation of Optimum Offer Prices in the Contract System in State and Municipal Procurement

Abstract

The work is aimed at solving the actual problem of estimating the optimal offer price with participation in tenders on electronic platforms. The proposed approach is based on the use of the Monte Carlo method for simulation in order not only to adequately assess the cost of the proposed project, but also to predict the demand for the project under different conditions, as well as to simulate the behavior and intentions of the auction participants. The constructed model allows us to study the pricing mechanism on electronic trading platforms. With the help of the presented simulation methods, the estimation of the optimal price of the contract proposal depending on the number of competitors and the contract value, as well as the intentions of the competitors’ participation in the auction, the simulation results are presented.

Keywords

• state and municipal order
• simulation modeling
• monte carlo method