CREED Seminars Amsterdam

Amos Schurr (Ben-Gurion University of the Negev, Israel)
Monday!! 13 June 2016

Competitive Bidding is the most common method used by organizations and governments to receive bids from prospective suppliers. Although this method is meant to ensure objective consideration of proposals, recent findings reveal a Lower-Bid-Bias. Evaluators tend to favorably appraise the cheapest rather than the best bid. In five experiments, utilizing eye-tracking techniques and comparing professionals’ to novices’ decisions, we uncover the attentional and behavioral processes underlying the bias and examine its extent. Practical solutions and one analytical model will be discussed