Article ID: | iaor20163527 |
Volume: | 245 |
Issue: | 1 |
Start Page Number: | 97 |
End Page Number: | 119 |
Publication Date: | Oct 2016 |
Journal: | Annals of Operations Research |
Authors: | Kksalan Murat, Karakaya Glsah |
Keywords: | decision: applications, e-commerce, internet, decision theory: multiple criteria, heuristics |
The advances in the technological infrastructure and in the Internet led electronic auctions to become popular. With online sites, people buy/sell inexpensive products/services through auctions. In this paper, we develop an interactive approach that provides aid to both the buyer and the bidders in a bi‐attribute, multi‐item auction environment. Our approach is applicable for both reverse and forward auctions. We test our approach for underlying linear preference functions of the buyer. We also adapt it as a heuristic for the case the buyer has a nonlinear preference function. The test results show that our approach works well.