Title: Bidding decision in multi-attribute reverse auction
Authors: Arun Kumar Ray, Mamata Jenamani, Pratap K.J. Mohapatra
Addresses: Department of Industrial Engineering and Management, Indian Institute of Technology, Kharagpur, West Bengal, India. ' Department of Industrial Engineering and Management, Indian Institute of Technology, Kharagpur, West Bengal, India. ' Department of Industrial Engineering and Management, Indian Institute of Technology, Kharagpur, West Bengal, India
Abstract: We design a decision making model for solving the bidding problem in a sealed bid multi-attribute reverse auction. Bidders in reverse auctions face the problem of decrementing the bid in every round until the final round. Although the bidders receive information from the previous rounds regarding the winning bid, but the decision regarding the bid-decrement is purely subjective. Considering the fuzziness in the available information and the subjective parameters, we develop a new bidding algorithm for multi-attribute reverse auctions using multi-stage fuzzy game technique. In this work, we present the fuzzy decision making model and use this to develop the bidding algorithm for multi-attribute reverse auction. We illustrate the use of the algorithm through an example. The agent using the fuzzy bidding algorithm is able to decide the bid intelligently in every round of the auction. The algorithm may be used by the agents to take bidding decisions adaptively in repeated auction scenario.
Keywords: fuzzy games; multi-attribute reverse auctions; bidding decisions; incomplete information; fuzzy decision making; modelling; bidding decisions.
International Journal of Applied Decision Sciences, 2010 Vol.3 No.3, pp.280 - 295
Published online: 19 Oct 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article