Bidder Support in Auctions
NERA consultants have advised bidders in auctions across many different industry sectors and countries. Because we are experts in auction design, we understand the risks that bidders are exposed to under specific auction formats and rules, and the ways of mitigating them.
We are typically engaged for high stakes auctions where bidders face either complex rules or strategic complexity in determining their bid levels and tactics. Even apparently simple auction formats, such as sealed bids or ascending bid processes, often create strategic challenges for bidders, as the best bid strategy may depend on the behavior of rivals. We use tools such as game theory and probability analysis to help our clients develop optimal strategies and react flexibly to rivals. We are adept at explaining complex rules, picking out flaws in design, and identifying strategic risks and opportunities.
The types of services that we offer include:
- Management of bid processes, including drafting responses to auction documents such as government consultations and company RFQs.
- License or product valuation and price benchmarking.
- Competitor analysis.
- Developing and executing a bid strategy.
- Provision of software for training the bid team and for tracking complex auctions.
- Advice on bid team logistics and internal governance processes.
- Real-time strategy advice and related support to the bid team throughout the auction.
