Abstract/Details

An analysis of bidding strategies in reverse and combinatorial auctions


2011 2011

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Abstract (summary)

This dissertation deals with the problem bidders have to solve to formulate their bids in two types of auctions: reverse and combinatorial auctions.

In reverse procurement auctions the object for sale is a contract, bidders are suppliers, and the bid taker is a buyer. The suppliers bidding for the contract are usually the current supplier (the incumbent) and a group of potential new suppliers (the entrants). Since the buyer has an ongoing relationship with the incumbent, he needs to adjust the bids of the entrants to include non-price attributes. The buyer can run a scoring auction, in which suppliers compete on the adjusted bids or scores, or, he can run a buyer-determined auction, in which suppliers compete on the price, and the buyer adjusts the bids with the non-price attributes after the auction to determine the winner. In the second chapter I study the bidding strategies in a buyer-determined auction in which an incumbent and a group of suppliers compete for a contract.

When diff erent types of suppliers compete (for example domestic and foreign suppliers), practitioners have observed that domestic suppliers stop bidding after observing a low bid from the foreign competitors, even though the domestic suppliers dominate their foreign competitors in non-price dimensions. To mitigate this anticompetitive behavior, the feedback given to suppliers in the auction changed from the bid price to the bid rank. In the third chapter, I study the bidding strategies when two suppliers of diff erent type compete in a reverse auction with rank feedback.

Finally, in the fourth chapter, I study the bidding strategies in sealed-bid combinatorial auctions. Combinatorial auctions are auctions of multiple heterogeneous objects that allow bids on subsets of the objects, giving bidders the exibility to express if the objects in a set are more valuable together than separate. This added exibility makes it possible for the bidders to express a variety of preferences, but also complicates the problem they need to solve to find their bidding strategies. I present the problem a bidder has to solve in a combinatorial auction of two objects, in which bidders submit mutually exclusive bids once and winners pay their bids.

Indexing (details)


Subject
Business administration;
Operations research;
Studies;
Auctions
Classification
0310: Business administration
0796: Operations research
Identifier / keyword
Social sciences; Applied sciences; Bidding strategies; Combinatorial auctions; Decision analysis; Procurement auctions; Reverse auctions
Title
An analysis of bidding strategies in reverse and combinatorial auctions
Author
Santamaria Tobar, Natalia
Number of pages
95
Publication year
2011
Degree date
2011
School code
0176
Source
DAI-A 73/02, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9781124981901
Advisor
Katok, Elena
University/institution
The Pennsylvania State University
University location
United States -- Pennsylvania
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
3483817
ProQuest document ID
902632456
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/902632456
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