Strecker, Stefan; Seifert, Stefan:

Electronic sourcing with multi-attribute auctions

In: Proceedings of the 37th Annual Hawaii International Conference on System Sciences, HICSS-37, Track: Internet and the Digital Economy, Minitrack: Business-to-Business Electronic Commerce, Big Island, HI, , January 5-8
Los Alamitos, CA: IEEE Computer Society (2004), S. 701-712
Buchaufsatz / Kapitel / Fach: Wirtschaftswissenschaften
Multi-attribute reverse auctions have been proposed as market institutions
	for “electronic request for quotation” buying processes. The choice
	of a multi-attribute auction institution for corporate sourcing is
	a challenge for the auctioneer in terms of utility maximization and
	allocational efficiency. The authors report on a computer-based laboratory
	experiment in a sole sourcing scenario of a single, indivisible object
	and investigate whether a multi-attribute reverse English and a multi-attribute
	reverse Vickrey auction institution lead to identical outcomes with
	respect to the buyer’s utility, suppliers’ profits and allocational
	efficiency. The results show no significant difference in suppliers’
	profits. However, the English auction institution leads to both higher
	allocational efficiency and buyer’s utility and is thus recommendable
	to corporate buyers. The documented breakdown of the outcome equivalence
	of the two auction institutions is attributed to bidders deviating
	from the dominant bidding strategy. The deviations are analyzed and
	explained by learning effects.