In this paper, we study first-price sealed-bid procurement auctions for divisible items. The auctions are divided into two cases: the auctioneer either does or does not compensate for an oversupply of the quantity purchased. The bidding behaviors of bidders are modeled, and then the optimal bidding strategy for bidders is obtained. It is shown that the bidder’s bidding price exists and is incre...

Cross-bidding is a new strategy used in online auctions. The bidder simultaneously monitors several identical auctions, taking advantage of their price differential. We examined the determinants and outcomes of cross-bidding behavior and the contingent factors that shape it. Using empirical data, we demonstrated that cross-bidders can realize significant price discounts compared to non-cross-bi...

We present a bidding strategy that enables an agent to bid in multiple English auctions. Based on a backward induction method, this Backward InDuction Strategy (BIDS) seeks to maximize the value of a utility function. In general, the agent needs to determine whether to bid in the next available auction. Note that it may be better to stop bidding if the current utility (the utility associated wi...

Collusion between suppliers in reverse auctions may damage buyers’ benifits and then lower efficiency of resource allocation. Under first-price sealed-bid reverse auction mechanism, suppliers' equilibrium bidding strategy and buyers' revenue loss was analyzed considering collusion. Then some general conclusions were given: suppliers' bidding strategy is relevant to some factors such as valuatio...

We will show that for any (possibly mixed) strategy τ played in a symmetric equilibrium, if τ(s) puts positive probability on m and τ(s′) puts positive probability on m′, then s′ > s implies m′ ≥ m. As in the text, define vτ (m, si) as the expected payoff to a bidder with type si from sending message m (and then bidding si if selected), given that her opponents are all playing the strategy τ an...

This paper proposes a multi-objective bidding strategy for a generation company (GenCo) in a day-ahead uniform price spot market using non-dominated sorting particle swarm optimisation (NSPSO). NSPSO is introduced to solve the multi-objective strategic bidding problem considering expected profit maximisation and risk (profit variation) minimisation. Monte Carlo (MC) simulation is employed to si...

& This article proposes optimal bidding strategies for a generation company (GenCo) considering risk of profit variation by self-organizing hierarchical particle swarm optimization with time-varying acceleration coefficients (SPSO-TVAC). Based on a trade-off technique, the expected profit maximization and risk minimization are achieved. Nonconvex operating cost functions of thermal generation u...

Retailers are increasingly exploiting sequential online auctions as an effective and low cost distribution channel for disposing large quantities of inventory. In such auction environments, bidders have the opportunity of participating in many auctions to learn and choose the bidding strategy that best fits their preferences. Previous studies have mostly focused on identifying bidding strategie...