On bidding for a fixed number of items in a sequence of auctions
AbstractWe consider the problem of a firm (“the buyer”) that must acquire a fixed number (L) of items. The buyer can acquire these items either at a fixed buy-it-now price in the open market or by participating in a sequence of N>L auctions. The objective of the buyer is to minimize his expected total cost for acquiring all L items. We model this problem as a Markov Decision Process and establish monotonicity properties for the optimal value function and the optimal bidding strategies.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 222 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/eor
Stochastic processes; Dynamic programming; Markov Decision Processes; Auctions/bidding;
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