Sign in
On optimal bidding in sequential procurement auctions
Journal article   Open access   Peer reviewed

On optimal bidding in sequential procurement auctions

Michael N. Katehakis and Kartikeya S. Puranam
Operations research letters, Vol.40(4), pp.244-249
07/2012

Abstract

Auctions Dynamic bidding Newsvendor Procurement
We investigate the problem of optimal bidding for a firm that in each period procures items to meet a random demand by participating in a finite sequence of auctions. We develop a new model for a firm where its item valuation derives from the sale of the acquired items via their demand distribution, sale price, acquisition cost, salvage value and lost sales. We establish monotonicity properties for the value function and the optimal dynamic bid strategy and we present computations.
pdf
bidding-ORL255.63 kBDownloadView
Accepted Manuscript (AM)Operations Research Letters Open Access
url
https://doi.org/10.1016/j.orl.2012.03.012View
Version of Record (VoR)Operations Research Letters

Metrics

Details

Logo image