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Chinese Journal of Management Science ›› 2008, Vol. 16 ›› Issue (1): 104-110.

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Research on Multi-Attribute Procurement Combinatorial Auction Dynamic Mechanism Design

HUANG He1, CHEN Jian2, XU Hong-yan2   

  1. 1.School of Economics Business Administration, Chongqing University, Chongqing 400044, China;
    2. School of Economics and Management, Tsinghua University, Beijing 100084, China
  • Received:2007-04-02 Revised:2007-11-20 Online:2008-02-28 Published:2008-02-28

Abstract: We design an iterative procurement combinatorial auction (CA) rules based on price-quality bidding pattern,then construct the conception "competitive equilibrium score"(CES) to formulate optimization problem for the quality-related CA mechanism. By applying CES and a linear program plus its dual, we model the objective function as allocation efficiency and constraints according to the auction rules. The model implements a primal-dual algorithm for the auction,computing a feasible primal and a feasible dual that satisfy complementary slackness conditions when auction terminates,meanwhile allocation efficiency is achieved in the iterative procurement CA.

Key words: multi-attribute procurement auction, combinatorial auction, dynamic mechanism design

CLC Number: