Emerging Multiple E-Auctions

Abstract

We review the emerging field of multiple issue e-auctions and discuss their design features and performance criteria. We primarily consider B2B transactions in a reverse auction, that is, a procurement setting. In traditional auctions, the matching of buyers and sellers is typically based just on price. However, when there are quality and other differences in the merchandize and differences in the terms of the transaction, which are common in Request for Quotes (RFQs), additional issues besides price should be considered. Such multiple issue, multiple unit e-auctions/ negotiations, and their characteristics are the focus of our paper. We also discuss the role that OR has played and undoubtedly will play in the design and implementation of such e-auctions.

Keywords: online auctions, multiple issue auctions, B2B, e-procurement, e-negotiations

JEL Classification: M, M11, R4