Article ID: | iaor20141946 |
Volume: | 65 |
Start Page Number: | 47 |
End Page Number: | 64 |
Publication Date: | Jul 2014 |
Journal: | Transportation Research Part B |
Authors: | Huang George Q, Xu Su Xiu |
Keywords: | primal-dual algorithm, procurement, auctions, combinatorial auction |
The purpose of this paper is to propose allocatively efficient auction mechanisms for the distributed transportation procurement problem (DTPP), which is generally the problem of matching demands and supplies over a transportation network. We first construct a one‐sided Vickrey–Clarke–Groves (O‐VCG) combinatorial auction for the DTPP where carriers are allowed to bid on bundles of lanes. The O‐VCG auction minimizes the total transportation cost (i.e.,