Time: 14:00-15:30, September 25, 2019 (Wednesday) 

Venue: 1620, Rear Main Building, Beijing Normal University 

Speaker: Prof. Lu Yuan-zhan (China Institute of Economics and Management, Central University of Finance and Economics) 

Title: Is Affiliate Bidding Corruption Harmful to tenderee?

Abstract: Under the framework of multi-dimensional bidding with the first score value, this paper studies the influence of the corrupt form of bidding agent who accepts bribes and briber who collude in bidding series, that is, the bidding agent allows briber to associate with bidding. This study finds that affiliate bidding corruption has no effect on the quality of commitment in bidder's bidding portfolio. The low-rated bid portfolio of the company was more vulnerable than that of the honest bidder. When the ratio of the return from briber to briber's profit increases, both the high-scoring bidding strategy set by briber and the low-scoring bidding strategy of the company become weaker. When there is corruption in bidding, the efficiency of bidding activities is reduced. Under the reasonable assumption that the briber's high-scoring bidding portfolio is more aggressive than the honest bidder's bidding portfolio, the briber's probability of winning increases, the honest bidder's probability of winning and expected profit decrease, and the expected utility of the bidder may increase or decrease.

About the speaker:

Lu Yuanxi is a professor and doctoral supervisor of The China Institute of Economics and Management, Central University of Finance and Economics, and a member of the Academic Committee of the Theoretical Economics Department of central University of Finance and Economics. Professor Lu graduated from Peking University in 1999 with a bachelor of Science degree and a double major in Economics.  He graduated from Guanghua School of Management, Peking University with a master's degree in Economics in 2002.  In 2007, He graduated from the Department of Economics, National University of Singapore with a PhD in Economics. His main research interests are industrial organization theory.  Lu's research is published in Oxford Economic Papers, International Journal of Industrial Organization, Economic Letters,  "Economics (Quarterly)" and a series of authoritative journals at home and abroad. In 2011, he was selected into the New Century Excellent Talents Support Program of the Ministry of Education, in 2014, he won the third prize of the 14th Young Teachers award for Higher Education of Fok Yingdong Education Foundation, and in 2017, he was awarded the title of Excellent Teacher of Beijing.