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A Multi-Attribute Reverse Auction Model on Margin Bidding

Author

Listed:
  • Benjiang Ma

    (Central South University, Changsha 410083, P. R. China)

  • Zhongmin Zhou

    (Central South University, Changsha 410083, P. R. China2Hunan University of Finance and Economics, Changsha 410205, P. R. China)

  • Muhammad Farhan Bashir

    (Central South University, Changsha 410083, P. R. China)

  • Yuanji Huang

    (Hunan University of Science and Engineering, Yongzhou 425199, P. R. China)

Abstract

Multi-attribute reverse auction has many advantages for the buyer with the multi-dimensional attribute requirements. However, it is hard to design an optimal auction mechanism for the scenario in practice. Therefore, this paper presents a method transforming multi-attribute auction into single-attribute auction by bidding in deposit. The analysis indicates that our method can reduce not only the transaction risk caused by the supplier’s bid abandonment but also the operating cost and complexity of the multi-attribute auction. Besides, our method meets the incentive compatibility and participation constraint conditions by promising that the highest bidding supplier is the winner in the Auction and can obtain higher expected profits than traditional auctions for the buyer.

Suggested Citation

  • Benjiang Ma & Zhongmin Zhou & Muhammad Farhan Bashir & Yuanji Huang, 2020. "A Multi-Attribute Reverse Auction Model on Margin Bidding," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(06), pages 1-21, December.
    • Handle: RePEc:wsi:apjorx:v:37:y:2020:i:06:n:s0217595920500323
    DOI: 10.1142/S0217595920500323
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    Citations

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    Cited by:

    1. Bashir, Muhammad Farhan & Pan, Yanchun & Shahbaz, Muhammad & Ghosh, Sudeshna, 2023. "How energy transition and environmental innovation ensure environmental sustainability? Contextual evidence from Top-10 manufacturing countries," Renewable Energy, Elsevier, vol. 204(C), pages 697-709.
    2. Bashir, Muhammad Adnan & Dengfeng, Zhao & Amin, Fouzia & Mentel, Grzegorz & Raza, Syed Ali & Bashir, Muhammad Farhan, 2023. "Transition to greener electricity and resource use impact on environmental quality: Policy based study from OECD countries," Utilities Policy, Elsevier, vol. 81(C).
    3. Jingsheng Lei & Sha Lin & M. Riaz Khan & Siman Xie & Muhammad Sadiq & Rashid Ali & Muhammad Farhan Bashir & Luqman Shahzad & Sayed M. Eldin & Ali H. Amin, 2022. "Research Trends of Board Characteristics and Firms’ Environmental Performance: Research Directions and Agenda," Sustainability, MDPI, vol. 14(21), pages 1-25, November.
    4. Li, Siying & Cifuentes-Faura, Javier & Talbi, Besma & Sadiq, Muhammad & Si Mohammed, Kamel & Bashir, Muhammad Farhan, 2023. "Dynamic correlated effects of electricity prices, biomass energy, and technological innovation in Tunisia's energy transition," Utilities Policy, Elsevier, vol. 82(C).

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