Analyzing Auction and Bargaining Mechanisms in E-Procurement with Supply Quality Risk

Author

He HUANG, Chongqing University
Hongyan XU, Chongqing University
Robert J. Kauffman, Singapore Management UniversityFollow
Ning SUN, Shanghai University of Finance and Economics

Publication Type

Journal Article

Publication Date

2013

Abstract

We compare two mechanisms from the buyer’s perspective in multi-attribute supply procurement, with verifiable and unverifiable quality of the supplies and risk aversion to deviation from acceptable quality: an auction mechanism and a generalized Nash bargaining mechanism. We develop a model to represent the effects on the buyer’s dominant strategy of bargaining and auction participation. The results suggest the conditions for which bargaining is preferred over the auction mechanism alone.

Discipline

Computer Sciences | E-Commerce | Management Information Systems

Research Areas

Information Systems and Management

Publication

Operations Research Letters

Volume

41

Issue

4

First Page

403

Last Page

409

ISSN

0167-6377

Identifier

10.1016/j.orl.2013.04.003

Publisher

Elsevier

Citation

HUANG, He; XU, Hongyan; Kauffman, Robert J.; and SUN, Ning. Analyzing Auction and Bargaining Mechanisms in E-Procurement with Supply Quality Risk. (2013). Operations Research Letters. 41, (4), 403-409.
Available at: https://ink.library.smu.edu.sg/sis_research/2111

Additional URL

http://dx.doi.org/10.1016/j.orl.2013.04.003