Bidding Strategies for Carrier in Combinatorial Transportation Auction

Pittawat Ueasangkomsate () and Manoj Lohatepanont ()
Additional contact information
Pittawat Ueasangkomsate: Chulalongkorn University, Japan
Manoj Lohatepanont: Chulalongkorn University, Thailand

International Journal of Business Research and Management (IJBRM), 2012, vol. 3, issue 1, 1-17

Abstract: In combinatorial auction for truckload transportation service procurement, we introduce the bidding strategy for carrier facing the hard valuation problem to all possible routes. The model uses a bid-to-cost ratio of carriers surveyed in Thailand to represent the bidding behavior in combinatorial freight procurement. This model facilitates carrier to value the bid price for interested packages that involve with pattern of transportation service under different competitive environment. The results of analysis with hypotheses in regression model reveal that pattern of transportation service, number of competitors, pattern of transportation service with number of competitors and a pre-empty backhaul to new lane distance ratio do impact significantly on bid price of carrier in combinatorial transportation auction. To find optimal bid price for interested packages in the incomplete information game, the empirical study in stochastic optimization problem with Monte Carlo method can present the best solution for bidder in order to acquire the maximum expected profit in the auction. The results obtained from optimal solution also show that they are more than the average benefit in the competition market considerably.

Keywords: A Bid-to-Cost Ratio; Bid Price; Combinatorial Auction; Transportation Procurement; Bidding Strategies; Optimization Problem (search for similar items in EconPapers)
JEL-codes: M0 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cscjournals.org/manuscript/Journals/IJ ... /Issue1/IJBRM-65.pdf (application/pdf)
https://www.cscjournals.org/library/manuscriptinfo.php?mc=IJBRM-65 (text/html)

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:aml:intbrm:v:3:y:2012:i:1:p:1-17

Access Statistics for this article

International Journal of Business Research and Management (IJBRM) is currently edited by Dr. Mattei Cristofaro

More articles in International Journal of Business Research and Management (IJBRM) from Computer Science Journals (CSC Journals)
Bibliographic data for series maintained by Nabeel Tahir ().