The first use of a combined-value auction for transportation services

John O. Ledyard; Mark Olson; David Porter; Joseph A. Swanson; David P. Torma

doi:10.1287/inte.32.5.4.30

The first use of a combined-value auction for transportation services

John O. Ledyard^*, Mark Olson, David Porter, Joseph A. Swanson, David P. Torma

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › peer-review

151 Scopus citations

Abstract

Combined-value auctions (CVAs) allow participants to make an offer of a single amount for a collection of items. These auctions provide value to both buyers and sellers of goods or services in a number of environments, but they have rarely been implemented, perhaps because of lack of knowledge and experience. Sears Logistics Services (SLS) is the first procurer of trucking services to use a CVA to reduce its costs. In 1993, it saved 13 percent over past procurement practices. Experimental economics played a crucial role in the development, sale, and use of the CVA.

Original language	English (US)
Pages (from-to)	4-12
Number of pages	9
Journal	Interfaces
Volume	32
Issue number	5
DOIs	https://doi.org/10.1287/inte.32.5.4.30
State	Published - 2002

Keywords

Economics
Games/group decisions: bidding/auctions
Transportation: costs

ASJC Scopus subject areas

Strategy and Management
Management Science and Operations Research
Management of Technology and Innovation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1287/inte.32.5.4.30

Cite this

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title = "The first use of a combined-value auction for transportation services",

abstract = "Combined-value auctions (CVAs) allow participants to make an offer of a single amount for a collection of items. These auctions provide value to both buyers and sellers of goods or services in a number of environments, but they have rarely been implemented, perhaps because of lack of knowledge and experience. Sears Logistics Services (SLS) is the first procurer of trucking services to use a CVA to reduce its costs. In 1993, it saved 13 percent over past procurement practices. Experimental economics played a crucial role in the development, sale, and use of the CVA.",

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AU - Olson, Mark

AU - Porter, David

AU - Swanson, Joseph A.

AU - Torma, David P.

PY - 2002

Y1 - 2002

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AB - Combined-value auctions (CVAs) allow participants to make an offer of a single amount for a collection of items. These auctions provide value to both buyers and sellers of goods or services in a number of environments, but they have rarely been implemented, perhaps because of lack of knowledge and experience. Sears Logistics Services (SLS) is the first procurer of trucking services to use a CVA to reduce its costs. In 1993, it saved 13 percent over past procurement practices. Experimental economics played a crucial role in the development, sale, and use of the CVA.

KW - Economics

KW - Games/group decisions: bidding/auctions

KW - Transportation: costs

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EP - 12

JO - Interfaces

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IS - 5

ER -

The first use of a combined-value auction for transportation services

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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