Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
482801 | European Journal of Operational Research | 2008 | 8 Pages |
Abstract
In a sealed bid multiple-item procurement auction, bidders may incur a fixed cost, which is common to all items. The paper develops pricing methods which ensure that a preset percentage profit level is always realized and the fixed cost is completely recovered, even if the eventual order is for some of the items at reduced quantities. One approach sets constraints and determines acceptable orders. Another alternative is to provide appropriate discounts. Finally, a third method considers fixed prices and imposes constraints that address the exposure problem of recovering the fixed cost. These methods may also be used for pricing combinatorial auctions.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Panos L. Lorentziadis,