You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
On Multiplicative Bidding Strategies
Michael H. Rothkopf
Vol. 28, No. 3, Part 1 (May - Jun., 1980), pp. 570-575
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/170405
Page Count: 6
Preview not available
Some models of competitive bidding consider only bidding strategies in which the bid is a preselected multiple of an estimate of the value (or cost) of the subject of the auction. This paper examines the effect of such a restriction on these models. In order to do so, it is necessary to show that the ratio of two positive random variables (e.g. a cost and a cost estimate) cannot be statistically independent of each of them unless the ratio is always the same.
Operations Research © 1980 INFORMS