One of the goals of procurement is to establish a fair price while affording the buyer some flexibility in selecting the suppliers to deal with. Reverse auctions do not have this flexibility, because it is the auction rules and not the buyer that determine the winner. But an important advantage of having this flexibility is that it allows buyers and suppliers to establish long-term relationship...

We investigate the economic outcomes that result under simulated bidder behavior in a model of the FCC’s reverse auction for radio spectrum. In our simulations, limiting our notion of efficiency to the reverse auction in isolation, the reverse clock auction achieves very efficient solutions, the FCC’s scoring rule greatly reduces the total payments to TV broadcasters at the cost of some efficie...

Although combinatorial reverse auction has attracted much attention recently, most studies focus on problems with single buyer and multiple sellers. In this paper, we will study combinatorial reverse auction with multiple buyers and multiple sellers. We propose the concept of proxy buyer to deal with this problem. The proxy buyer consolidates the demands from the buyers and then holds a reverse...

Rent-seeking behavior by participants in payment for environmental services auctions reduces the number of affordable contracts and decreases environmental protection. I propose a new auction mechanism, the provision point reverse auction (PPRA), to mitigate this rent-seeking behavior. The PPRA includes a public component where the probability of contract acceptance for one individual is affect...

Quasi‐linearity of preferences is one of the standard assumptions in auction theory. This assumption is of particular significance in multi‐attribute reverse auctions which are used in procurement. This paper presents an analysis of this assumption and its implications. Building on observations of scholars in economics and decision sciences who note that in practice such preferences may be rare...

Reverse auctions and negotiations are two common procurement mechanisms. The drawback of many auctions is their sole focus on price. The drawback of negotiations is that they are sequential, slow and costly. Internet enables multi-attribute auctions and multi-bilateral multi-attribute negotiations efficiently. In both processes concession-making plays a key role. The paper presents typology of ...

This paper provides an updated overview of the rapidly developing research field of multi-attribute online reverse auctions. Our focus is on academic research, although we briefly comment on the state-of-the-art in practice. The role that Operational Research plays in such auctions is highlighted. We review decisionand game-theoretic research, experimental studies, information disclosure polici...

the sensitivity analysis for multi-attribute decision making (madm) problems is important for two reasons: first, the decision matrix as the source of the results of a decision problem is inaccurate because it sorts the alternatives in each criterion inaccurately. second, the decision maker may change his opinions in a time period because of changes in the importance of the criteria and in the ...

Reverse auctions offer the prospect of more efficiently matching suppliers and producers in the face of changing market conditions. Prior research has generally ignored the temporal and finite capacity constraints under which reverse auctioneers typically operate. In this paper, we consider the problem faced by a manufacturer (or service provider) that needs to fulfill a number of customer orde...

To be successful in multi-attribute auction, agents must be capable of adapting to continuous changing bidding price. This paper presents a novel fuzzy attitude based bidding strategy (FA-Bid), which employs dual assessment technique i.e. assessment of multiple attributes of the goods as well as assessment of agents attitude (eagerness) to procure an item in automated auction. The assessment of...