Authors
G Perrone, P Roma, G Lo Nigro
Publication date
2010/3/1
Journal
International Journal of Production Economics
Volume
124
Issue
1
Pages
20-31
Publisher
Elsevier
Description
In recent years, use of multi-attribute auctions has been consolidating as a powerful mechanism in procurement settings where multiple drivers affect the transaction outcome. This paper provides a project management approach for multi-attribute auction design for standardized engineering services procurement in the context of new product development in automotive industry. Two variables are taken into account in the bidding process: price and duration of the given engineering activity. From a theoretical viewpoint, we fully determine optimal suppliers’ bidding strategies and expected outcomes, i.e. score/utility, price and duration, for the buyer under both first score sealed bid and second score sealed bid auctions. We show that this two schemes are equivalent in terms of score/utility even in presence of multi-dimensional suppliers’ private information. Therefore, they could be used interchangeably. Under a …
Total citations
20112012201320142015201620172018201920202021202255910106311431