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Mechanism design of electronic reverse auction considering supplier’s cost structure. (Chinese. English summary) Zbl 1313.91060

Summary: Procurement using electronic reverse auction is an important method for enterprises and government to reduce procurement cost. However, due to the different cost structure of different type supplier, it is difficult to carry out the mechanism of electronic reverse auction successfully. Considering two types of cost structure suppliers, i.e. distributor and manufacturer, a mechanism design of electronic reverse auction is studied. The basic mechanism is designed at first, which includes the bidding strategy of supplier and allocation strategy of purchaser. The result reveals that the basic mechanism is efficient for the auction when the supplier is distributor. After that, taking into account the basic mechanism cannot achieve the convergence of manufacturer auction, an improved mechanism with limited strategy is proposed. The improved mechanism could achieve the convergence of manufacturer auction. Numerical simulations based on Matlab show the efficiency of proposed mechanisms.

MSC:

91B26 Auctions, bargaining, bidding and selling, and other market models

Software:

Matlab
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