A Multi-Attribute Reverse Auction Model on Margin Bidding

Benjiang Ma (), Zhongmin Zhou, Muhammad Farhan Bashir () and Yuanji Huang ()
Additional contact information
Benjiang Ma: Central South University, Changsha 410083, P. R. China
Zhongmin Zhou: Central South University, Changsha 410083, P. R. China2Hunan University of Finance and Economics, Changsha 410205, P. R. China
Muhammad Farhan Bashir: Central South University, Changsha 410083, P. R. China
Yuanji Huang: Hunan University of Science and Engineering, Yongzhou 425199, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2020, vol. 37, issue 06, 1-21

Abstract: Multi-attribute reverse auction has many advantages for the buyer with the multi-dimensional attribute requirements. However, it is hard to design an optimal auction mechanism for the scenario in practice. Therefore, this paper presents a method transforming multi-attribute auction into single-attribute auction by bidding in deposit. The analysis indicates that our method can reduce not only the transaction risk caused by the supplier’s bid abandonment but also the operating cost and complexity of the multi-attribute auction. Besides, our method meets the incentive compatibility and participation constraint conditions by promising that the highest bidding supplier is the winner in the Auction and can obtain higher expected profits than traditional auctions for the buyer.

Keywords: Multi-attribute reverse auction; margin bidding; procurement; incentive compatibility (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595920500323
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:apjorx:v:37:y:2020:i:06:n:s0217595920500323

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595920500323

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().