Combinatorial Auction of Used Cars Considering Pro-Environment Attribute: A Social Welfare Perspective

Gang Ma, Zhengming Zhou, Shilei Wang (), Ke Zhou, Junjun Zheng and Chujian Wang
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Gang Ma: College of Economics and Management, Zhengzhou University of Light Industry, Zhengzhou 450001, China
Zhengming Zhou: Postdoctoral Research Station, Bank of Communications, Shanghai 200336, China
Shilei Wang: Bussiness School, Zhengzhou University of Aeronautics, Zhengzhou 454000, China
Ke Zhou: Economics and Management School, Wuhan University, Wuhan 430072, China
Junjun Zheng: Economics and Management School, Wuhan University, Wuhan 430072, China
Chujian Wang: College of Economics and Management, Zhengzhou University of Light Industry, Zhengzhou 450001, China

Sustainability, 2023, vol. 15, issue 16, 1-16

Abstract: Air pollution is becoming more and more serious as the number of vehicles increases. To address such problems, many cities have implemented many measures, including the circular economy mode, in which used cars with low carbon emission are becoming important in the sustainable transportation and carbon abatement. Considering multi-attribute demand, this study designed combinatorial auction mechanism for the bidders of automobile enterprises on an online used-car platform to achieve social welfare maximization. Two kinds of attributes were considered, namely, price attribute and non-price attributes; the latter particularly included the pro-environment attribute based on an analysis of complementarity and substitutability. Moreover, the mechanism was proved to satisfy individual rational condition and incentive compatibility condition. Numerical application showed that preference for the pro-environment attribute can better realize social welfare and respond to national energy conservation and emission reduction targets. As a result, from the social welfare perspective, the multi-attribute combinatorial auction can provide a reference for more fair and effective allocation of used cars to bidders and can promote both buyer’s utility and seller’s income.

Keywords: used car; multi-attribute; combinatorial auction; social welfare (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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