New Auction Strategy Predicts Winning Bidder and Maximizes Buyer's Payoff
Researchers studied a type of auction used in buying things with multiple attributes. They created a special auction where bidders submit bids one by one. By analyzing the bidders' strategies, they found the best bidding price and values for non-price attributes. They also showed that the bidder with the lowest cost wins if the bid increment is small enough. The winning bid can be predicted, and the buyer's expected payoff was estimated. The optimal values for the scoring function's weights were calculated for the buyer.