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A weighted product method for bidding strategies in multi-attribute auctions

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Abstract

To eliminate computational problems involved in evaluating multi-attribute bids with different measures, this article first normalizes each individual component of a bid, and then makes use of the weighted product method to present a new scoring function that converts each bid into a score. Two kinds of multi-attribute auction models are introduced in terms of scoring rules and bidding objective functions. Equilibrium bidding strategies, procurer’s revenue comparisons and optimal auction design are characterized in these two models. Finally, this article discusses some improvement of robustness of our models, with respect to the assumptions.

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Authors and Affiliations

  1. MADIS, Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, 100190, China

    Mingxi Wang & Shouyang Wang

  2. School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China

    Mingxi Wang & Shulin Liu

  3. Department of Management Sciences, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong, China

    Kin Keung Lai

Authors
  1. Mingxi Wang
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  2. Shulin Liu
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  3. Shouyang Wang
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  4. Kin Keung Lai
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Corresponding author

Correspondence to Mingxi Wang.

Additional information

This research is supported by the Foundation for the Author of National Excellent Doctoral Dissertation of China under Grant No. 200159 and National Natural Science Foundation of China under Grant No. 70571014.

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Wang, M., Liu, S., Wang, S. et al. A weighted product method for bidding strategies in multi-attribute auctions. J Syst Sci Complex 23, 194–208 (2010). https://doi.org/10.1007/s11424-010-9337-5

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  • DOI: https://doi.org/10.1007/s11424-010-9337-5

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