Multi-attribute online reverse auctions: recent research trends. (English) Zbl 1341.91084
Summary: 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 decision- and game-theoretic research, experimental studies, information disclosure policies, and research on integrating and comparing negotiations and auctions. We conclude by discussing implementation issues regarding online procurement auctions in practice.
MSC:
| 91B26 | Auctions, bargaining, bidding and selling, and other market models |
| 91-02 | Research exposition (monographs, survey articles) pertaining to game theory, economics, and finance |
References:
| [1] | Adomavicius, G.; Gupta, A.; Sanyal, P., Design and evaluation of feedback schemes for multiattribute procurement auctions, Proceedings of International Conference on Information Systems, 1-17 (2008) |
| [2] | Adomavicius, G.; Gupta, A.; Sanyal, P., Effect of information feedback on the outcomes and dynamics of multisourcing multiattribute procurement auctions, Journal of Management Information Systems, 28, 4, 199-229 (2012) |
| [3] | Asker, J. W.; Cantillon, E., Properties of scoring auctions, RAND Journal of Economics, 39, 69-85 (2008) |
| [5] | Beil, D.; Wein, L., An inverse-optimization-based auction for multiattribute RFQs, Management Science, 49, 11, 1529-1545 (2003) · Zbl 1232.91274 |
| [6] | Bellosta, M. J.; Kornman, S.; Vanderpooten, D., Preference-based English reverse auctions, Artificial Intelligence, 175, 7-8, 1449-1467 (2011) · Zbl 1237.91107 |
| [7] | Benyoucef, M.; Alj, H.; Vézeau, M.; Keller, R. K., Combined negotiations in e-commerce: Concepts and architecture, Electronic Commerce Research, 1, 3, 277-299 (2001) |
| [8] | Bichler, M., An experimental analysis of multi-attribute auctions, Decision Support Systems, 29, 3, 249-268 (2000) |
| [9] | Bichler, M., The future of E-markets: Multidimensional market mechanisms (2001), Cambridge University Press: Cambridge University Press Cambridge, UK |
| [10] | Bichler, M.; Kalagnanam, J., Configurable offers and winner determination in multi-attribute auctions, European Journal of Operational Research, 160, 380-394 (2005) · Zbl 1067.90097 |
| [11] | Branco, F., The design of multidimensional auctions, RAND Journal of Economics, 28, 63-81 (1997) |
| [12] | Brunelli, M., E-auctions save millions for Quaker Oats and SmithKlieneBeecham, Purchasing, 128, 1, 8-22 (2000) |
| [13] | Bulow, J.; Klemperer, P., Auctions versus Negotiations, The American Economic Review, 86, 1, 180-194 (1996) |
| [14] | Butler, J. C.; Dyer, J. S.; Jia, J.; Tomak, K., Enabling e-transactions with multi-attribute preference models, European Journal of Operational Research, 186, 2, 748-765 (2008) · Zbl 1146.90438 |
| [15] | Carr, S., Note on online auctions with costly bid evaluation, Management Science, 49, 11, 1521-1528 (2003) |
| [16] | Chan, F. T.S.; Shukla, M.; Tiwari, M. K.; Shankar, R.; Choy, K. L., B2B multi-attribute e-procurement: An artificial immune system based goal programming approach, International Journal of Production Research, 49, 2, 321-341 (2011) |
| [17] | Che, Y., Design competition through multidimensional auctions, RAND Journal of Economics, 24, 668-679 (1993) |
| [18] | Chen, E.; Kersten, G.; Neumann, D.; Vahidov, R., E-market framework: The assessment and comparison of auction, negotiation and decision support, InterNeg research papers INR02, 1-20 (2009) |
| [19] | Chen, S.; Tseng, M. M., A negotiation-credit-auction mechanism for procuring customized products, International Journal of Production Economics, 127, 1, 203-210 (2010) |
| [20] | Cheng, C., Solving a sealed-bid reverse auction problem by multiple-criterion decision-making methods, Computers and Mathematics with Applications, 56, 3261-3274 (2008) · Zbl 1165.91379 |
| [21] | Chen-Ritzo, C.; Harrison, T.; Kwasnica, A.; Thomas, D., Better, faster, cheaper: An experimental analysis of multi-attribute reverse auction mechanism with restricted information feedback, Management Science, 51, 12, 1753-1762 (2005) · Zbl 1232.91100 |
| [22] | Cramton, P.; Shoham, Y.; Steinberg, R., Combinatorial auctions (2006), MIT Press: MIT Press Boston, M A · Zbl 1194.91018 |
| [23] | David, E.; Azoulay-Schwartz, S.; Kraus, S., Bidding in sealed-bid and English multi-attribute auctions, Decision Support Systems, 42, 2, 527-556 (2006) |
| [24] | De Smet, Y., Multi-criteria auctions without full comparability of bids, European Journal of Operational Research, 17, 3, 1433-1452 (2007) · Zbl 1110.90048 |
| [25] | Ellis, R. D.; Herbsman, Z. J., Cost-time bidding concept: An innovative approach, Transportation Research Record, 1282, 89-94 (1990) |
| [26] | Elmaghraby, W., Auctions within E‐sourcing events, Production and Operations Management, 16, 4, 409-422 (2007) |
| [27] | Emiliani, M. L.; Stec, D. J., Commentary on “Reverse auctions for relationship marketers” by Daly and Nath, Industrial Marketing Management, 34, 2, 167-171 (2005) |
| [28] | Engel, Y.; Wellman, M. P., Multiattribute auctions based on generalized additive independence, Journal of Artificial Intelligence Research, 37, 479-525 (2010) · Zbl 1191.68724 |
| [29] | Engelbrecht-Wiggans, R.; Haruvy, E.; Katok, E., A comparison of buyer-determined and price-based multiattribute mechanisms, Marketing Science, 26, 5, 629-641 (2007) |
| [30] | Engelbrecht-Wiggans, R.; Katok, E., E-sourcing in procurement: Theory and behavior in reverse auctions with noncompetitive contracts, Management Science, 52, 4, 581-596 (2006) · Zbl 1232.91052 |
| [31] | Foroughi, A.; Kocakulah, M.; Williams, J., A framework for electronic reverse auction (eRa) research, Journal of Internet Commerce, 6, 3, 45-74 (2007) |
| [32] | Greenwald, A.; Kannan, K.; Krishnan, R., On evaluating information revelation policies in procurement auctions: A Markov decision process approach, Information Systems Research, 21, 1, 15-36 (2010) |
| [33] | Gupta, A.; Parente, S.; Sanyal, P., Competitive bidding for health insurance contracts: Lessons from the online HMO auctions, International Journal of Health Care Finance and Economics, 12, 303-322 (2012) |
| [35] | Gwebu, L., Decision support in multi-attribute reverse auctions, Journal of Electronic Commerce Research, 10, 4, 252-264 (2009) |
| [36] | Gwebu, K. L.; Hu, M. Y.; Shanker, M. S., An experimental investigation into the effects of information revelation in multi-attribute reverse auctions, Behaviour & Information Technology, 31, 6, 631-644 (2012) |
| [37] | Haruvy, E.; Katok, E., Increasing revenue by decreasing information in procurement auctions, Production and Operations Management, 22, 1, 19-35 (2013) |
| [38] | Herbsman, Z. J., A+B bidding method - Hidden success story for highway construction, Journal of Construction Engineering and Management, 121, 4, 430-437 (1995) |
| [39] | Herbsman, Z. J.; Ellis, R., Multiparameter bidding system - Innovation in contract administration, Journal of Construction Engineering and Management, 118, 1, 142-150 (1992) |
| [40] | Hindriks, K. V.; Tykhonov, D.; de Weerdt, M. M., Qualitative one-to-many multi-issue negotiation: Approximating the QVA, Group Decision and Negotiation, 21, 1, 49-77 (2012) |
| [41] | Hohner, G.; Rich, J.; Ng, E.; Reid, G.; Davenport, A.; Kalaganam, J. R., Combinatorial and quantity-discount procurement auctions benefit Mars, Incorporated and its suppliers, Interfaces, 33, 23-35 (2003) |
| [42] | Huang, H.; Kauffman, R. J.; Xu, H.; Zhao, L., Mechanism design for e-procurement auctions: On the efficacy of post-auction negotiation and quality effort incentives, Electronic Commerce Research and Applications, 10, 6, 650-672 (2011) |
| [43] | Hur, D.; Hartley, J. L.; Mabert, V. A., Implementing reverse e-auctions: A learning process, Business Horizons, 49, 1, 21-29 (2006) |
| [44] | Jap, S., The impact of online reverse auction design on buyer-supplier relationships, Journal of Marketing, 71, 1, 146-159 (2007) |
| [45] | Kameshwaran, S.; Narahari, Y.; Rosa, C. H.; Kulkarni, D. M.; Tew, J. D., Multiattribute electronic procurement using goal programming, European Journal of Operational Research, 179, 2, 518-536 (2007) · Zbl 1130.90339 |
| [46] | Karakaya, G.; Köksalan, M., An interactive approach for multi-attribute auctions, Decision Support Systems, 51, 2, 299-306 (2011) |
| [47] | Keeney, R. L.; Raiffa, H., Decisions with multiple objectives: Preferences and value tradeoffs (1976), Wiley & Sons: Wiley & Sons New York · Zbl 0488.90001 |
| [49] | Kersten, G.; Pontrandolfo, P.; Vahidov, R.; Gimon, D., Negotiation and auction mechanisms in E-procurement: Systems and experiments, (Shaw, M. J.; Zhang, D.; Yue, W. T., E-Life: Web-enabled convergence of commerce, work, and social life (2012), LNBIP 108, Springer), 400-412 |
| [50] | Kersten, G. E.; Vahidov, R.; Gimon, D., Concession-making in multi-attribute auctions and multi-bilateral negotiations: Theory and experiments, Electronic Commerce Research and Applications, 12, 3, 166-180 (2013) |
| [52] | Koppius, O.; Van Heck, E., Information architecture and electronic market performance in multi-dimensional auctions, Erasmus Research Institute of Management, 38 (2003), Rotterdam School of Management, Erasmus University: Rotterdam School of Management, Erasmus University Rotterdam, The Netherlands |
| [53] | Korhonen, P.; Silvennoinen, K.; Wallenius, J.; Öörni, A., Can a linear value function explain choices: An experimental study, European Journal of Operational Research, 219, 2, 360-367 (2012) · Zbl 1244.91025 |
| [54] | Kostamis, D.; Beil, D. R.; Duenyas, I., Total-cost procurement auctions: Impact of suppliers’ cost adjustments on auction format choice, Management Science, 55, 12, 1985-1999 (2009) · Zbl 1232.91315 |
| [56] | Lewis, G.; Bajari, P., Procurement contracting with time incentives: Theory and evidence, Quarterly Journal of Economics, 126, 3, 1173-1211 (2011) |
| [57] | Metty, T.; Harlan, R.; Samelson, Q.; Moore, T.; Morris, T.; Sorensen, R., Reinventing the supplier negotiation process at Motorola, Interfaces, 35, 7-23 (2005) |
| [58] | Milgrom, P., Putting auction theory to work (2004), Cambridge University Press: Cambridge University Press Cambridge |
| [59] | Narasimhan, R.; Talluri, S.; Mahapatra, S., Effective response to RFQs and supplier development: A supplier’s perspective, International Journal of Production Economics, 115, 451-470 (2008) |
| [60] | Parkes, D.; Kalagnanam, J., Models for iterative multi-attribute procurement auctions, Management Science, 51, 3, 435-451 (2005) · Zbl 1232.91323 |
| [61] | Parsons, S.; Rodriguez-Aguilar, J. A.; Klein, M., Auctions and bidding: A guide for computer scientists, ACM Computing Surveys (CSUR), 43, 2, 1-59 (2011), [article 10] · Zbl 1293.91090 |
| [62] | Peng, L.; Calvi, R., Why don’t buyers like electronic reverse auctions? Some insights from a French study, International Journal of Procurement Management, 5, 3, 352-367 (2012) |
| [63] | Perrone, G.; Roma, P.; Lo Nigro, G., Designing multi-attribute auctions for engineering services procurement in new product development in the automotive context, International Journal of Production Economics, 124, 20-31 (2010) |
| [64] | Pham, L.; Zaitsev, A.; Steiner, R.; Teich, J., Negotiauction: An experimental study, Decision Support Systems, 56, 300-309 (2013) |
| [65] | Pontrandolfo, P.; Wu, S.; Moramarco, R.; Kersten, G. E., Auctions and negotiations in transportation service procurement, Proceedings of group decision and negotiations conference, 241-252 (2010) |
| [66] | Puro, L.; Teich, J.; Wallenius, H.; Wallenius, J., Bidding strategies for real-life small loan auctions, Decision Support Systems, 51, 1, 31-41 (2011) |
| [67] | Rao, C.; Wu, X., Optimization decision method for procuring divisible goods, International Journal of Computational Intelligence Systems, 5, 6, 1160-1172 (2012) |
| [68] | Rao, C.; Zhao, Y.; Ma, S., Procurement decision making mechanism of divisible goods based on multi-attribute auction, Electronic Commerce Research and Applications, 11, 4, 397-406 (2012) |
| [69] | Ray, A. K.; Jenamani, M.; Mohapatra, P. K., An efficient reverse auction mechanism for limited supplier base, Electronic Commerce Research and Applications, 10, 2, 170-182 (2011) |
| [70] | Ray, A. K.; Jenamani, M.; Mohapatra, P. K., Relationship preserving multi-attribute reverse auction: A web-based experimental analysis, Computers & Industrial Engineering, 66, 2, 418-430 (2013) |
| [72] | Sandholm, T., Optimal winner determination algorithms, (Cramton, P.; Shoham, Y.; Steinberg, R., Combinatorial auctions (2006), MIT Press: MIT Press Boston, MA), 337-368 |
| [73] | Sandholm, T., Very large-scale generalized combinatorial multi-attribute auctions, (Vulkan, N.; Roth, A. E.; Neeman, Z., The handbook of market design (2013), Oxford University Press: Oxford University Press UK) |
| [74] | Saroop, A.; Sehgal, S. K.; Ravikumar, K., A multi-attribute auction format for procurement with limited disclosure of buyer’s preference structure, Decision Support for Global Enterprises, 257-267 (2007), Springer: Springer USA |
| [75] | Schoenherr, T.; Mabert, V. A., Online reverse auctions: Common myths versus evolving reality, Business Horizons, 50, 5, 373-384 (2007) |
| [76] | Shakun, M. F., Multi-bilateral multi-issue E-negotiation in E-commerce with a tit-for-tat computer agent, Group Decision and Negotiation, 14, 5, 383-392 (2005) |
| [77] | Shi, W., A sealed‐bid multi‐attribute auction protocol with strong bid privacy and bidder privacy, Security and Communication Networks (2013) |
| [78] | Singh, R. K.; Benyoucef, L., A fuzzy TOPSIS based approach for e-sourcing, Engineering Applications of Artificial Intelligence, 24, 3, 437-448 (2011) |
| [79] | Snir, E.; Hitt, L., Costly bidding in online markets for IT services, Management Science, 49, 11, 1504-1520 (2003) |
| [80] | Staschus, K.; Davidson, J.; Gross, G.; Logan, D.; Perone, S.; Shirmohammadi, D., A multi-attribute evaluation framework for electric resource acquisition in California, International Journal of Electrical Power & Energy Systems, 13, 2, 73-80 (1991) |
| [81] | Strecker, S., Information revelation in multiattribute English auctions: A laboratory study, Decision Support Systems, 49, 3, 272-280 (2010) |
| [82] | Strecker, S.; Seifert, S., Electronic sourcing with multi-attribute auctions, Proceedings of the 37th Hawaii international conference on system sciences, 1-10 (2004) |
| [83] | Subramanian, G., Negotiauction: New dealmaking strategies for a competitive marketplace (2010), W.W. Norton & Company: W.W. Norton & Company MA |
| [84] | Talluri, S.; Narasimhan, R.; Viswanathan, S., Information technologies for procurement decisions: A decision support system for multi-attribute e-reverse auctions, International Journal of Production Research, 45, 11, 2615-2628 (2007) · Zbl 1126.90361 |
| [85] | Tassabehji, R.; Taylor, W. A.; Beach, R.; Wood, A., Reverse e-auctions and supplier-buyer relationships: An exploratory study, International Journal of Operations and Production Management, 26, 2, 166-184 (2006) |
| [86] | Teich, J.; Wallenius, H.; Wallenius, J., Multiple-issue auction and market algorithms for the World Wide Web, Decision Support Systems, 26, 1, 49-66 (1999) |
| [87] | Teich, J.; Wallenius, H.; Wallenius, J.; Koppius, O., Emerging multiple issue e-auctions, European Journal of Operational Research, 159, 1, 1-16 (2004) · Zbl 1067.90090 |
| [88] | Teich, J.; Wallenius, H.; Wallenius, J.; Zaitsev, A., Designing electronic auctions: An internet-based hybrid procedure combining aspects of negotiations and auctions, Electronic Commerce Research, 1, 301-314 (2001) |
| [89] | Teich, J.; Wallenius, H.; Wallenius, J.; Zaitsev, A., A multi-attribute e-auction mechanism for procurement: Theoretical foundations, European Journal of Operational Research, 175, 90-100 (2006) · Zbl 1137.90564 |
| [90] | De Vries, S.; Vohra, R., Combinatorial auctions: A survey, INFORMS Journal on Computing, 15, 284-309 (2003) · Zbl 1238.91003 |
| [91] | Wang, M.; Liu, S.; Wang, S.; Lai, K., A weighted product method for bidding strategies in multi-attribute auctions, Journal of Systems Science and Complexity, 23, 194-208 (2010) · Zbl 1298.91094 |
| [92] | Yang, N.; Liao, X.; Huang, W. W., Decision support for preference elicitation in multi-attribute electronic procurement auctions through an agent-based intermediary, Decision Support Systems, 57, 127-138 (2014) |
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.
