Due to the various and obsolete nature, fresh agricultural product has enormous unused value. It is significant to design multi-attribution auction for agricultural supply chain trading (ASCT). This paper proposes a novel scoring auction for agricultural supply chain trading. In such a mechanism, poverty alleviation is considered. A second-preferred-score and a Vickrey-Clarke-Groves score (VCG-score) auctions for both single-unit and multi-unit multi-attribute cases are used to realize incentive compatible, allocatively efficient, individually rational, budget balanced. Additionally, two types of auction models have incorporated poverty alleviation, which also achieve the same properties. The effectiveness and robustness of our mechanism are verified by numerical study.
Cite this paper
Cheng, H. , Zhang, Y. , He, H. and Zheng, S. (2023). A Novel Scoring Auction for Agricultural Supply Chain Trading. Open Access Library Journal, 10, e901. doi: http://dx.doi.org/10.4236/oalib.1110901.
Wang, C. and Chen, X. (2016) Option Pricing and Coordination in the Fresh Produce Supply Chain with Portfolio Contracts. Annals of Operations Research, 248, 471-491. https://doi.org/10.1007/s10479-014-1646-y
Turban, E., Outland, J., King, D., et al. (2018) Electronic Commerce 2018: A Managerial and Social Networks Perspective. Springer International Publishing, Cham.
https://doi.org/10.1007/978-3-319-58715-8
Kambil, A. and van Heck, E. (1998) Reengineering the Dutch Flower Auctions: A Framework for Analyzing Exchange Organizations. Information Systems Research, 9, 1-19. https://doi.org/10.1287/isre.9.1.1
McCabe, K.A., Rassenti, S.J. and Smith, V.L. (1990) Auction Institutional Design: Theory and Behavior of Simultaneous Multiple-Unit Generalizations of the Dutch and English Auctions. The American Economic Review, 80, 1276-1283.
Kambil, A. and van Heck, E. (1995) Information Technology, Competition and Market Transformations: Re-Engineering the Dutch Flower Auctions. NYU Working Paper. https://ssrn.com/abstract=1290227
Crawford, V.P. and Kuo, P.-S. (2003) A Dual Dutch Auction in Taipei: The Choice of Numeraire and Auction Form in Multi-Object Auctions with Bundling. Journal of Economic Behavior & Organization, 51, 427-442.
https://doi.org/10.1016/S0167-2681(02)00182-8
Asker, J. and Cantillon, E. (2008) Properties of Scoring Auctions. The RAND Journal of Economics, 39, 69-85. https://doi.org/10.1111/j.1756-2171.2008.00004.x
Xiao, F., Wang, H., Guo, S., et al. (2021) Efficient and Truthful Multi-Attribute Auctions for Crowdsourced Delivery. International Journal of Production Economics, 240, Article ID: 108233. https://doi.org/10.1016/j.ijpe.2021.108233
Joseph, B. and Gary, S. (2009) Supply Chain Strategies for Perishable Products: The Case of Fresh Produce. Production and Operations Management, 18, 129-137.
https://doi.org/10.1111/j.1937-5956.2009.01016.x
Soto-Silva, W.E., Nadal-Roig, E., González-Araya, M.C. and Pla-Aragones, L.M. (2016) Operational Research Models Applied to the Fresh Fruit Supply Chain. European Journal of Operational Research, 251, 345-355.
https://doi.org/10.1016/j.ejor.2015.08.046
Wu, Q., Mu, Y. and Feng, Y. (2015) Coordinating Contracts for Fresh Product Outsourcing Logistics Channels with Power Structures. International Journal of Production Economics, 160, 94-105. https://doi.org/10.1016/j.ijpe.2014.10.007
Ma, X., Wang, J., Bai, Q. and Wang, S. (2020) Optimization of a Three-Echelon Cold Chain Considering Freshness-Keeping Efforts under Cap-and-Trade Regulation in Industry 4.0. International Journal of Production Economics, 220, Article ID: 107457. https://doi.org/10.1016/j.ijpe.2019.07.030
Ahumada, O. and Villalobos, J.R. (2009) Application of Planning Models in the Agri-Food Supply Chain: A Review. European Journal of Operational Research, 196, 1-20. https://doi.org/10.1016/j.ejor.2008.02.014
Borodin, V., Bourtembourg, J., Hnaien, F. and Labadie, N. (2016) Handling Uncertainty in Agricultural Supply Chain Management: A State of the Art. European Journal of Operational Research, 254, 348-359.
https://doi.org/10.1016/j.ejor.2016.03.057
Cramton, P., Shoham, Y. and Steinberg, R. (2007) An Overview of Combinatorial Auctions. ACM SIGecom Exchanges, 7, 3-14.
https://doi.org/10.1145/1345037.1345039
Miyashita, K. (2014) Online Double Auction Mechanism for Perishable Goods. Electronic Commerce Research and Applications, 13, 355-367.
https://doi.org/10.1016/j.elerap.2014.06.004
Huang, J. and Song, J. (2017) Optimal Inventory Control with Sequential Online Auction in Agriculture Supply Chain: An Agent-Based Simulation Optimisation Approach. International Journal of Production Research, 56, 2322-2338.
https://doi.org/10.1080/00207543.2017.1373203
Nishimura, T. (2015) Optimal Design of Scoring Auctions with Multidimensional Quality. Review of Economic Design, 19, 117-143.
https://doi.org/10.1007/s10058-015-0169-6
Papakonstantinou, A. and Bogetoft, P. (2017) Multi-Dimensional Procurement Auction under Uncertain and Asymmetric Information. European Journal of Operational Research, 258, 1171-1180. https://doi.org/10.1016/j.ejor.2016.09.060
Lorentziadis, P.L. (2020) Competitive Bidding in Asymmetric Multidimensional Public Procurement. European Journal of Operational Research, 282, 211-220.
https://doi.org/10.1016/j.ejor.2019.09.005
Cheng, M., Xu, S.X. and Huang, G.Q. (2016) Truthful Multi-Unit Multi-Attribute Double Auctions for Perishable Supply Chain Trading. Transportation Research Part E: Logistics and Transportation Review, 93, 21-37.
https://doi.org/10.1016/j.tre.2016.05.009
Cong, Y. and Zheng, Y. (2017) Study on Operation Mode of Agricultural Supply Chain in WeChat Business Environment. Journal of Service Science and Management, 10, 330-337. https://doi.org/10.4236/jssm.2017.103026