The optimal bidding strategies research on multi-attribute reverse auction mechanism

Abstract

In this paper, we mainly study the multi-attribute reverse auction mechanism with multiple winners. By the multi-attribute utility theory and the probability theory, we build a multi-attribute procurement model, which is more in line with reality procurement environment, and then prove the supplier's optimal bidding strategies. Moreover, we compare it with the first scoring model and conclude that, the optimal quality bidding strategies remain constant, while the optimal price bidding strategy increases with the number of the successful bidders. © 2014 Springer-Verlag Berlin Heidelberg..