The empirical analysis of the NN-bilateral optimized combinatorial auction model

This study proposes a new and highly efficient dynamic combinatorial auction mechanism—the NN-bilateral optimized combinatorial auction (NN-BOCA). NN-BOCA is a flexible iterative combinatorial auction model that offers more optimized trading for multiple suppliers and purchasers in the supply chain than one-sided combinatorial auction. We design the NN-BOCA model from the perspectives of market architecture, trading rules, and decision strategy for winner determination, the decision strategy for winner determination needs flexible optimization modeling capability. Thus rule-based reasoning was applied for reflecting the flexible decision strategies. We also show the viability of NN-BOCA through Paired Samples TT-test experimentation. It shows that NN-BOCA yields higher purchase efficiency and effectiveness than the one-auctioneer to multi-bidders (1-to-NN) combinatorial auction mechanism.