ELECTRONIC PRICE AND TRADING: DETERMINANT FACTORS IN THE SEARCH OF THE LOWEST PRICE

Abstract

This study treats about an analysis of the electronic bidding in face of the expansion of its use
in government procurement, which according to the Ministry of Economy has promoted in
recent years more practicality, isonomy, transparency, competitiveness, efficiency and
economy. In this scenario, we analyzed the main elements that make up the bidding process,
highlighting the effects of negotiations on the bids and the prices reached. The study selected
eight factors, estimated price, quantity of bidders, quantity demanded, initial bid, number of
bids, type of trading, negotiation and insistence on negotiation. A sample was separated from
the eight most bidded objects according to the Ministry of Economy, where data were collected
from 1271 bids from 2018. A multiple regression was performed in Excel, placing as
independent variables the cited elements and as dependent variable the lowest price reached .
Focusing on the trading characteristic of the electronic bidding, an analysis of the incidence of
negotiations in public sessions and a general comparison of prices, including all the objects
analyzed in the study, was also performed. The results showed that the most relevant factors in
the trading results are the number of participants and the estimated price, while trading was not
relevant and common when prices were high. However, there was a gain in the overall analysis
with price reductions even if already below the estimated. Given this, the study shows that
competitiveness and robust price research are crucial for better results and negotiation, although
not decisive, provides small gains in public sector bids.