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The use of mixtures of market and experimental choice data in establishing guideline weights for evaluating competitive bids in a transport organisation

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  • Hensher, D. A.
  • Louviere, J. J.
  • Hansen, D. E.

Abstract

The government sector is increasingly using competitive bidding for service deliveries such as the provision of bus and rail services as well as the purchasing of professional engineering services such as project planning, design, and project supervision. As part of a program to simplify and introduce consistency in the tender evaluation process, one government transport agency in New Zealand financed a study to investigate the potential of combined revealed and stated preference methods as a way of establishing weights to attach to the criteria used to evaluate offers of engineering services. These techniques have mainly been used in the study of travel choices; yet they have a much broader appeal in studying the decision making process of organisations. In this paper we use a data-mixing model to capture the decision expertise of a transport organisation through the revelation of preference weights for each evaluation criterion. Using choice information based on both market-driven and experimentally derived choice sets, we should be able to increase the robustness of the evaluation weights in comparison to the weights obtained from single data-sourced models. The resulting parameterised tool can be used in subsequent tender evaluations to provide an additional source of advice to supplement or replace that provided by current members of a bid evaluation team.

Suggested Citation

  • Hensher, D. A. & Louviere, J. J. & Hansen, D. E., 2000. "The use of mixtures of market and experimental choice data in establishing guideline weights for evaluating competitive bids in a transport organisation," Transport Policy, Elsevier, vol. 7(4), pages 279-286, October.
    • Handle: RePEc:eee:trapol:v:7:y:2000:i:4:p:279-286
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    References listed on IDEAS

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