| Article ID: | iaor2004209 |
| Country: | United States |
| Volume: | 32 |
| Issue: | 5 |
| Start Page Number: | 4 |
| End Page Number: | 12 |
| Publication Date: | Sep 2002 |
| Journal: | Interfaces |
| Authors: | Olson Mark, Ledyard John O., Porter David |
| Keywords: | game theory, bidding, transportation: general |
Combined-value auctions (CVAs) allow participants to make an offer of a single amount for a collection of items. These auctions provide value to both buyers and sellers of goods or services in a number of environments, but they have rarely been implemented, perhaps because of lack of knowledge and experience. Sears Logistics Services (SLS) is the first procurer of trucking services to use a CVA to reduce its costs. In 1993, it saved 13 percent over past procurement practices. Experimental economics played a crucial role in the development, sale and use of the CVA.