37 lines
804 B
Markdown
37 lines
804 B
Markdown
# Strategy
|
|
|
|
The field of strategy is concerned with the optimal solutions of problematic scenarios.
|
|
|
|
## Decision Theory
|
|
|
|
Decision theory concerns
|
|
|
|
* ~~internal problems~~
|
|
* ~~no competition~~
|
|
* ~~internal optimization~~
|
|
|
|
## Game Theory
|
|
|
|
Game theory concerns decisions made in competition with other intelligent actors.
|
|
|
|
Predictions of competitor behavior in bids and market movements
|
|
are made with a game-theoretic lens.
|
|
|
|
### Auction Theory
|
|
|
|
Auction theory is a subset of game theory
|
|
that specifically addresses the competitive bid format
|
|
typical of construction project award.
|
|
|
|
## In Construction Contracting
|
|
|
|
**Executives** inform **Risk Tolerance**,
|
|
**Risk Tolerance** informs **Minimum Estimate Certainty**
|
|
|
|
### Bid Strategy
|
|
|
|
Project cost certainty
|
|
|
|
#### Expected Competition
|
|
|
|
### Estimation Strategy |