Revolutionizing procurement: Dynamic auctions maximize efficiency and minimize costs!
Dynamic auctions are beneficial for purchasing related items like energy products or environmental allowances. These auctions involve bids specifying quantities of each item, such as megawatt-hours of electricity or tons of emissions. The goal is to efficiently procure goods from the lowest-cost suppliers while minimizing payment. The approach considers the buyer's objectives and bidding environment to design effective auctions. The key findings suggest that auction design should focus on achieving a balance between efficiency and cost minimization in realistic procurement scenarios.