An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools

This article studies a multi-item auction characterized by asymmetric bidders and quantity discounts. We report a practical application of this type of auction in the procurement of Internet services to the 709 public schools of Buenos Aires. The asymmetry in this application is due to firms’ existi...

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Autor principal: Bonomo, F.
Otros Autores: Catalán, J., Durán, G., Epstein, R., Guajardo, M., Jawtuschenko, A., Marenco, J.
Formato: Capítulo de libro
Lenguaje:Inglés
Publicado: Springer New York LLC 2017
Acceso en línea:Registro en Scopus
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245 1 3 |a An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools 
260 |b Springer New York LLC  |c 2017 
270 1 0 |m Durán, G.; CONICETArgentina; email: gduran@dm.uba.ar 
506 |2 openaire  |e Política editorial 
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520 3 |a This article studies a multi-item auction characterized by asymmetric bidders and quantity discounts. We report a practical application of this type of auction in the procurement of Internet services to the 709 public schools of Buenos Aires. The asymmetry in this application is due to firms’ existing technology infrastructures, which affect their ability to provide the service in certain areas of the city. A single round first-price sealed-bid auction, it required each participating firm to bid a supply curve specifying a price on predetermined graduated quantity intervals and to identify the individual schools it would supply. The maximal intersections of the sets of schools each participant has bid on define regions we call competition units. A single unit price must be quoted for all schools supplied within the same quantity interval, so that firms cannot bid a high price where competition is weak and a lower one where it is strong. Quantity discounts are allowed so that the bids can reflect returns-to-scale of the suppliers and the auctioneer may benefit of awarding bundles of units instead of separate units. The winner determination problem in this auction poses a challenge to the auctioneer. We present an exponential formulation and a polynomial formulation for this problem, both based on integer linear programming. The polynomial formulation proves to find the optimal set of bids in a matter of seconds. Results of the real-world implementation are reported. © 2016, Springer Science+Business Media New York.  |l eng 
593 |a Departamento de Computación, FCEN, UBA, Buenos Aires, Argentina 
593 |a CONICET, Buenos Aires, Argentina 
593 |a Instituto de Cálculo, FCEN, UBA, Buenos Aires, Argentina 
593 |a Departamento de Matemática, FCEN, UBA, Buenos Aires, Argentina 
593 |a Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, Santiago, Chile 
593 |a Department of Business and Management Science, NHH Norwegian School of Economics, Bergen, Norway 
593 |a Instituto de Ciencias, Universidad Nacional de General Sarmiento, Buenos Aires, Argentina 
690 1 0 |a ASYMMETRIC BIDDERS 
690 1 0 |a INTEGER LINEAR PROGRAMMING 
690 1 0 |a MULTI-ITEM AUCTION 
690 1 0 |a QUANTITY DISCOUNTS 
700 1 |a Catalán, J. 
700 1 |a Durán, G. 
700 1 |a Epstein, R. 
700 1 |a Guajardo, M. 
700 1 |a Jawtuschenko, A. 
700 1 |a Marenco, J. 
773 0 |d Springer New York LLC, 2017  |g v. 258  |h pp. 569-585  |k n. 2  |p Ann. Oper. Res.  |x 02545330  |t Annals of Operations Research 
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