Designing intelligent software agents for B2B sequential dutch auctions: A structural econometric approach

Yixin Lu, Alok Gupta, Wolfgang Ketter, Eric van Heck

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Citation (Scopus)

Abstract

We study multi-unit sequential Dutch auctions in a complex B2B context. Using a large real-world dataset, we apply structural econometric analysis to recover the parameters governing the distribution of bidders' valuations. The identification of these parameters allows us to simulate auction results under different designs and perform policy counterfactuals. We also develop a dynamic optimization approach to guide the setting of key auction parameters. Given the bounded rationality of human decision makers, we propose to augment auctioneers' capabilities with high performance decision support tools in the form of software agents. Our paper contributes to both theory and practice of auction design. From the theoretical perspective, this is the first study that explicitly models the sequential aspects of Dutch auctions using structural econometric analysis. From the managerial perspective, this paper offers useful implications to business practitioners for complex decision making in B2B auctions.

Original languageEnglish (US)
Title of host publicationInternational Conference on Information Systems (ICIS 2013)
Subtitle of host publicationReshaping Society Through Information Systems Design
Pages1073-1089
Number of pages17
StatePublished - Dec 1 2013
EventInternational Conference on Information Systems, ICIS 2013 - Milan, Italy
Duration: Dec 15 2013Dec 18 2013

Publication series

NameInternational Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design
Volume2

Other

OtherInternational Conference on Information Systems, ICIS 2013
CountryItaly
CityMilan
Period12/15/1312/18/13

Fingerprint

Intelligent agents
Software Agents
auction
Intelligent Agents
Auctions
Econometrics
Structural analysis
econometrics
Software agents
Decision making
Bounded Rationality
Industry
Dynamic Optimization
Decision Support
Valuation
rationality
software
Dutch auction
Structural econometrics
decision maker

Keywords

  • Auction design
  • B2B market
  • Decision support systems
  • Dynamic programming
  • Multi-unit sequential auctions
  • Software agents
  • Structural modeling

Cite this

Lu, Y., Gupta, A., Ketter, W., & van Heck, E. (2013). Designing intelligent software agents for B2B sequential dutch auctions: A structural econometric approach. In International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design (pp. 1073-1089). (International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design; Vol. 2).

Designing intelligent software agents for B2B sequential dutch auctions : A structural econometric approach. / Lu, Yixin; Gupta, Alok; Ketter, Wolfgang; van Heck, Eric.

International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design. 2013. p. 1073-1089 (International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design; Vol. 2).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Lu, Y, Gupta, A, Ketter, W & van Heck, E 2013, Designing intelligent software agents for B2B sequential dutch auctions: A structural econometric approach. in International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design. International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design, vol. 2, pp. 1073-1089, International Conference on Information Systems, ICIS 2013, Milan, Italy, 12/15/13.
Lu Y, Gupta A, Ketter W, van Heck E. Designing intelligent software agents for B2B sequential dutch auctions: A structural econometric approach. In International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design. 2013. p. 1073-1089. (International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design).
Lu, Yixin ; Gupta, Alok ; Ketter, Wolfgang ; van Heck, Eric. / Designing intelligent software agents for B2B sequential dutch auctions : A structural econometric approach. International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design. 2013. pp. 1073-1089 (International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design).
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