Models for Iterative Multiattribute Procurement Auctions
AbstractMultiattribute auctions extend traditional auction settings to allow negotiation over nonprice attributes such as weight, color, and terms of delivery, in addition to price and promise to improve market efficiency in markets with configurable goods. This paper provides an iterative auction design for an important special case of the multiattribute allocation problem with special (preferential independent) additive structure on the buyer value and seller costs. Auction Additive&Discrete provides a refined design for a price-based auction in which the price feedback decomposes to an additive part with a price for each attribute and an aggregate part that appears as a price discount for each supplier. In addition, this design also has excellent information revelation properties that are validated through computational experiments. The auction terminates with an outcome of a modified Vickrey-Clarke-Groves mechanism. This paper also develops Auction NonLinear&Discrete for the more general nonlinear case---a particularly simple design that solves the general multiattribute allocation problem, but requires that the auctioneer maintains prices on bundles of attribute levels.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 51 (2005)
Issue (Month): 3 (March)
multiattribute negotiation; iterative auctions; price-based feedback; Vickrey-Clarke-Groves mechanism; ex post Nash equilibrium; straightforward bidding; procurement;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Wang, Hong, 2013. "Contingent payment auction mechanism in multidimensional procurement auctions," European Journal of Operational Research, Elsevier, vol. 224(2), pages 404-413.
- repec:wyi:wpaper:002025 is not listed on IDEAS
- Papakonstantinou, A. & Bogetoft, P., 2013.
"Crowd-sourcing with uncertain quality - an auction approach,"
46055, University Library of Munich, Germany.
- Papakonstantinou, A. & Bogetoft, P., 2013. "Crowd-sourcing with uncertain quality - an auction approach," MPRA Paper 44236, University Library of Munich, Germany.
- Benjamin Blau & Clemens Dinther & Tobias Conte & Yongchun Xu & Christof Weinhardt, 2009. "How to Coordinate Value Generation in Service Networks," Business & Information Systems Engineering, Springer, vol. 1(5), pages 343-356, October.
- Papakonstantinou, A. & Bogetoft, P., 2012. "Multi-dimensional auctions under information asymmetry for costs and qualities," MPRA Paper 43563, University Library of Munich, Germany.
- repec:wyi:journl:002158 is not listed on IDEAS
- repec:fee:wpaper:0901 is not listed on IDEAS
- Shachat, Jason, 2009. "Procuring Commodities: Request for Quote or Reverse Auctions?," MPRA Paper 13418, University Library of Munich, Germany.
- Jason Shachat & Lijia Wei, 2012.
"Procuring Commodities: First-Price Sealed-Bid or English Auctions?,"
INFORMS, vol. 31(2), pages 317-333, March.
- Jain, Vipul & Panchal, Gajanan B. & Kumar, Sameer, 2014. "Universal supplier selection via multi-dimensional auction mechanisms for two-way competition in oligopoly market of supply chain," Omega, Elsevier, vol. 47(C), pages 127-137.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.