Preference revelation in multi-attribute reverse English auctions: A laboratory study

In: Proceedings of Twenty-Fourth International Conference on Information Systems (ICIS 2003), Seattle, WA, December 14-17
Seattle, WA: Association for Information Systems (2003), S. 271-282
Buchaufsatz / Kapitel / Fach: Wirtschaftswissenschaften
Abstract:
The effects of preference revelation on allocational and Pareto efficiency
	are studied in a multi-attribute reverse English auction. Multi-attribute
	reverse auctions have been proposed as market institutions for electronic
	request for quotation buying processes. Preference revelation is
	a crucial question in multi-attribute reverse auctions in terms of
	the efficiency of auction outcomes. Results from a computer-based
	laboratory experiment are reported and auction outcomes are analyzed
	regarding the buyer’s and suppliers’ surplus, efficiency, and Pareto
	efficiency. The results show that suppliers make more profits when
	preferences are revealed, but not at the expense of the buyer, and
	that full revelation of the buyer’s preferences significantly increases
	allocational and Pareto efficiency.