With the focus on public sector general building contracting, the objective of the paper "Modeling the heterogeneity in contractors’ mark-up behavior" is to investigate the extent to which heterogeneity exists in practice using a heterogeneous approach to statistical modeling. A linear mixed modeling technique is applied to derive empirically the individual-specific parameter estimates for every Hong Kong and Singapore contractor in the samples involved, by relating their mark-up behavior to four project decision environment factors: 1 market conditions; 2 number of bidders; 3 project type; and 4 project size. |