Title: English multi-attribute reverse auction model with the minimum non-monetary attributes bidding values

Authors: Xianke Zeng; Yuqiang Feng

Addresses: School of Management, Harbin Institute of Technology, 13 Fayuan Street, Nangang District, Harbin, Heilongjiang 150001, China ' School of Management, Harbin Institute of Technology, 13 Fayuan Street, Nangang District, Harbin, Heilongjiang 150001, China

Abstract: We propose a new English multi-attribute reverse auction model with the minimum non-monetary attributes bidding values under the procurement auction scenario. The existing multi-attribute auction models usually do not include the constraints on non-monetary attributes bidding values. Obviously, it is unreasonable because the auctioneer usually will have a requirement for the non-monetary attribute value. So we extend the multi-attribute reverse auction model and propose the structurised mathematical expressions of the optimal bidding price and non-monetary attributes for the bidders' bidding decision. Further, we analyse the mathematical characteristics and the economic implications of these expressions. Finally, we present two numerical examples to demonstrate the minimum non-monetary attributes bidding values indeed impact on the bidders' bidding decision and the final auction result.

Keywords: multi-attribute reverse auctions; English MARAs; auction modelling; bidding decisions; non-monetary attributes; minimum bidding values; procurement auctions; optimal bidding prices; structurised mathematical expressions.

DOI: 10.1504/IJADS.2014.065222

International Journal of Applied Decision Sciences, 2014 Vol.7 No.4, pp.405 - 423

Received: 15 Jan 2014
Accepted: 23 Mar 2014

Published online: 27 Oct 2014 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article