Multi-unit combinatorial reverse auctions with transformability relationships among goods

Abstract

In this paper we extend the notion of multi-unit combinatorial reverse auction by adding a new dimension to the goods at auction. In such a new type of combinatorial auction a buyer can express transformability relationships among goods: some goods can be transformed into others at a transformation cost. Transformability relationships allow a buyer to introduce his information as to whether it is more convenient to buy some goods or others. We introduce such information in the winner determination problem (WDP) so that not only does the auction help allocate the optimal set of offers - taking into account transformability relationships-, but also assesses the transformability relationships that apply. In this way, the buyer finds out what goods to buy, to whom, and what transformations to apply to the acquired goods in order to obtain the required ones. © Springer-Verlag Berlin Heidelberg 2005.