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 Modeling the Procurement of School Equipment and Competition among Suppliers
Bogdanov, A. D., Kolobov, D. V., and Shchepkin, A. V. Modeling the Procurement of School Equipment and Competition among Suppliers
Abstract. This paper is devoted to the interaction of schools and suppliers as well as the processes of competition among suppliers for public procurement. Maximizing its utility function, a school determines an optimal distribution of its budget between labor costs and the purchase of equipment. Next, different suppliers begin to compete for the equipment budget, maximizing either their profit or revenue. Depending on the market (municipal, regional, or All-Russian), the procurement processes can be described using various models, ranging from perfect competition and oligopoly to monopoly. In the case of monopoly, suppliers provide no discounts on their products; under perfect competition, suppliers reduce prices to the level of their maximum profit. New applications of several game-theoretic models to the procurement of equipment and the description of competition among suppliers are proposed.
Keywords: school education, competition, decision-making, oligopoly, monopoly, auction, game theory.
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