A New Dynamic Auction Mechanism in the Supply Chain: N-Bilateral Optimized Combinatorial Auction(N-BOCA)

Abstract

In this paper, we introduce a new combinatorial auction mechanism - N-Bilateral Optimized Combinatorial Auction (N-BOCA). N-BOCA is a flexible iterative combinatorial auction model that offers optimized trading for multi-suppliers and multi-purchasers in the supply chain. We design the N-BOCA system from the perspectives of architecture, protocol, and trading strategy. Under the given N-BOCA architecture and protocol, auctioneers and bidders have diverse decision strategies for winner determination. This needs flexible modeling environments. Hence, we propose an optimization modeling agent for bid and auctioneer selection. Finally, we show the viability of N-BOCA through prototype and experiments. The results say both higher allocation efficiency and effectiveness compared with 1-to-N general combinatorial auction mechanisms.