IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v240y2021ics0925527321002097.html
   My bibliography  Save this article

Efficient and truthful multi-attribute auctions for crowdsourced delivery

Author

Listed:
  • Xiao, Fei
  • Wang, Haijun
  • Guo, Shuojia
  • Guan, Xu
  • Liu, Baoshan

Abstract

Crowdsourced delivery is an emerging parcel delivery paradigm that leverages occasional couriers’ excess capacities to transport goods. In a crowdsourced delivery system, couriers offer their excess trip capacities to requesters with packages of different weights and distinct valuations for the service. This paper studies the truthful and efficient multi-attribute auction design for the crowdsourced delivery. We develop a second-preferred-score and a Vickrey-Clarke-Groves score (VCG-score) auctions for both single-unit and multi-unit multi-attribute cases, where price and weight are jointly evaluated when assigning package delivery tasks. The proposed auctions lead to truthful private valuation revelation and social welfare maximization. Computational analyses show that our proposed multi-attribute auctions outperform the single-attribute auction and the fixed rate mechanism in maximizing social welfare.

Suggested Citation

  • Xiao, Fei & Wang, Haijun & Guo, Shuojia & Guan, Xu & Liu, Baoshan, 2021. "Efficient and truthful multi-attribute auctions for crowdsourced delivery," International Journal of Production Economics, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:proeco:v:240:y:2021:i:c:s0925527321002097
    DOI: 10.1016/j.ijpe.2021.108233
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527321002097
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2021.108233?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chao Chen & Shenle Pan, 2016. "Using the Crowd of Taxis to Last Mile Delivery in E-Commerce: a methodological research," Post-Print hal-01480533, HAL.
    2. Akeb, Hakim & Moncef, Btissam & Durand, Bruno, 2018. "Building a collaborative solution in dense urban city settings to enhance parcel delivery: An effective crowd model in Paris," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 223-233.
    3. Yeon-Koo Che, 1993. "Design Competition through Multidimensional Auctions," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 668-680, Winter.
    4. Kong, Xiang T.R. & Kang, Kai & Zhong, Ray Y. & Luo, Hao & Xu, Su Xiu, 2021. "Cyber physical system-enabled on-demand logistics trading," International Journal of Production Economics, Elsevier, vol. 233(C).
    5. Guo, Chaojie & Thompson, Russell G. & Foliente, Greg & Kong, Xiang T.R., 2021. "An auction-enabled collaborative routing mechanism for omnichannel on-demand logistics through transshipment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    6. Cheng, Meng & Xu, Su Xiu & Huang, George Q., 2016. "Truthful multi-unit multi-attribute double auctions for perishable supply chain trading," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 21-37.
    7. Lai, Minghui & Cai, Xiaoqiang & Hu, Qian, 2017. "An iterative auction for carrier collaboration in truckload pickup and delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 60-80.
    8. Perrone, G. & Roma, P. & Lo Nigro, G., 2010. "Designing multi-attribute auctions for engineering services procurement in new product development in the automotive context," International Journal of Production Economics, Elsevier, vol. 124(1), pages 20-31, March.
    9. Punel, Aymeric & Stathopoulos, Amanda, 2017. "Modeling the acceptability of crowdsourced goods deliveries: Role of context and experience effects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 18-38.
    10. John Asker & Estelle Cantillon, 2008. "Properties of scoring auctions," RAND Journal of Economics, RAND Corporation, vol. 39(1), pages 69-85, March.
    11. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    12. Fernando Branco, 1997. "The Design of Multidimensional Auctions," RAND Journal of Economics, The RAND Corporation, vol. 28(1), pages 63-81, Spring.
    13. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    14. Zhang, Juliang & Xiang, Jie & Cheng, T.C. Edwin & Hua, Guowei & Chen, Cheng, 2019. "An optimal efficient multi-attribute auction for transportation procurement with carriers having multi-unit supplies," Omega, Elsevier, vol. 83(C), pages 249-260.
    15. Lorentziadis, Panos L., 2020. "Competitive bidding in asymmetric multidimensional public procurement," European Journal of Operational Research, Elsevier, vol. 282(1), pages 211-220.
    16. McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
    17. Wang, Yuan & Zhang, Dongxiang & Liu, Qing & Shen, Fumin & Lee, Loo Hay, 2016. "Towards enhancing the last-mile delivery: An effective crowd-tasking model with scalable solutions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 279-293.
    18. Devari, Aashwinikumar & Nikolaev, Alexander G. & He, Qing, 2017. "Crowdsourcing the last mile delivery of online orders by exploiting the social networks of retail store customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 105-122.
    19. David C. Parkes & Jayant Kalagnanam, 2005. "Models for Iterative Multiattribute Procurement Auctions," Management Science, INFORMS, vol. 51(3), pages 435-451, March.
    20. Su Xiu Xu & George Q. Huang, 2017. "Efficient Multi‐Attribute Multi‐Unit Auctions for B2B E‐Commerce Logistics," Production and Operations Management, Production and Operations Management Society, vol. 26(2), pages 292-304, February.
    21. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    22. Bruno Durand & Hakim Akeb & Btissam Moncef, 2018. "Building a collaborative solution in dense urban city settings to enhance parcel delivery: An effective crowd model in Paris [L'élaboration d'une solution collaborative de livraisons urbaines en vu," Post-Print hal-01781155, HAL.
    23. Archetti, Claudia & Savelsbergh, Martin & Speranza, M. Grazia, 2016. "The Vehicle Routing Problem with Occasional Drivers," European Journal of Operational Research, Elsevier, vol. 254(2), pages 472-480.
    24. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    25. Li, Baoxiang & Krushinsky, Dmitry & Reijers, Hajo A. & Van Woensel, Tom, 2014. "The Share-a-Ride Problem: People and parcels sharing taxis," European Journal of Operational Research, Elsevier, vol. 238(1), pages 31-40.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu, Hao & Huang, Min & Chao, Xiuli & Yue, Xiaohang, 2022. "Truthful multi-attribute multi-unit double auctions for B2B e-commerce logistics service transactions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    2. Zhang, Meng & Kong, Zhaojun, 2022. "A multi-attribute double auction and bargaining model for emergency material procurement," International Journal of Production Economics, Elsevier, vol. 254(C).
    3. Xiao, Haohan & Xu, Min & Wang, Shuaian, 2023. "A game-theoretic model for crowd-shipping operations with profit improvement strategies," International Journal of Production Economics, Elsevier, vol. 262(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu, Hao & Huang, Min & Chao, Xiuli & Yue, Xiaohang, 2022. "Truthful multi-attribute multi-unit double auctions for B2B e-commerce logistics service transactions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    2. Zhang, Meng & Kong, Zhaojun, 2022. "A multi-attribute double auction and bargaining model for emergency material procurement," International Journal of Production Economics, Elsevier, vol. 254(C).
    3. Benjamin Blau & Clemens Dinther & Tobias Conte & Yongchun Xu & Christof Weinhardt, 2009. "How to Coordinate Value Generation in Service Networks," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(5), pages 343-356, October.
    4. Pourrahmani, Elham & Jaller, Miguel, 2021. "Crowdshipping in last mile deliveries: Operational challenges and research opportunities," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    5. Papakonstantinou, Athanasios & Bogetoft, Peter, 2017. "Multi-dimensional procurement auction under uncertain and asymmetric information," European Journal of Operational Research, Elsevier, vol. 258(3), pages 1171-1180.
    6. Nils Boysen & Stefan Fedtke & Stefan Schwerdfeger, 2021. "Last-mile delivery concepts: a survey from an operational research perspective," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(1), pages 1-58, March.
    7. David C. Parkes & Jayant Kalagnanam, 2005. "Models for Iterative Multiattribute Procurement Auctions," Management Science, INFORMS, vol. 51(3), pages 435-451, March.
    8. Papakonstantinou, A. & Bogetoft, P., 2013. "Crowd-sourcing with uncertain quality - an auction approach," MPRA Paper 44236, University Library of Munich, Germany.
    9. Pham, Long & Teich, Jeffrey & Wallenius, Hannele & Wallenius, Jyrki, 2015. "Multi-attribute online reverse auctions: Recent research trends," European Journal of Operational Research, Elsevier, vol. 242(1), pages 1-9.
    10. Zhe Chen, 2021. "The bid orchestration and competitions in scoring procurement auctions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1718-1729, October.
    11. Cleophas, Catherine & Cottrill, Caitlin & Ehmke, Jan Fabian & Tierney, Kevin, 2019. "Collaborative urban transportation: Recent advances in theory and practice," European Journal of Operational Research, Elsevier, vol. 273(3), pages 801-816.
    12. 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.
    13. Jie Xiang & Juliang Zhang & T. C. E. Cheng & Jose Maria Sallan & Guowei Hua, 2019. "Efficient Multi-Attribute Auctions Considering Supply Disruption," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(03), pages 1-28, June.
    14. Amin Sayedi & Kinshuk Jerath & Marjan Baghaie, 2018. "Exclusive Placement in Online Advertising," Marketing Science, INFORMS, vol. 37(6), pages 970-986, November.
    15. Boysen, Nils & Emde, Simon & Schwerdfeger, Stefan, 2022. "Crowdshipping by employees of distribution centers: Optimization approaches for matching supply and demand," European Journal of Operational Research, Elsevier, vol. 296(2), pages 539-556.
    16. Vergamini, Daniele & Viaggi, Davide & Raggi, Meri, 2016. "Agri-environmental measures and farmers’ rent: evaluating the potential contribution of auctions to increase the efficiency of Agri-environmental schemes in Emilia-Romagna (Italy)," 2016 Fifth AIEAA Congress, June 16-17, 2016, Bologna, Italy 242443, Italian Association of Agricultural and Applied Economics (AIEAA).
    17. Marc N. Conte & Robert M. Griffin, 2017. "Quality Information and Procurement Auction Outcomes: Evidence from a Payment for Ecosystem Services Laboratory Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 99(3), pages 571-591, April.
    18. Lorentziadis, Panos L., 2020. "Competitive bidding in asymmetric multidimensional public procurement," European Journal of Operational Research, Elsevier, vol. 282(1), pages 211-220.
    19. Martin Bichler & Alexander Pikovsky & Thomas Setzer, 2009. "An Analysis of Design Problems in Combinatorial Procurement Auctions," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(1), pages 111-117, February.
    20. Tapia, Rodrigo J. & Kourounioti, Ioanna & Thoen, Sebastian & de Bok, Michiel & Tavasszy, Lori, 2023. "A disaggregate model of passenger-freight matching in crowdshipping services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:240:y:2021:i:c:s0925527321002097. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.