Abstract

This study focuses on mechanism design in order to solve multi-attribute e-procurement problems. In particularly, this study addresses two realistic requirements in mechanism design: (1) specifications of request/proposal on multiple attributes, and (2) incentive compatibility on information exchange/disclosure. Taking into account the needs and emergence of advanced mechanisms in eprocurement, this study presents a generic process model for the design of two feasible classes of mechanisms: multi-attribute reverse auctions and multi-attribute multi-bilateral negotiations. It allows buyers to control preference representation and information revelation, assuring that suppliers obtain sufficient information in making effective proposals while protecting confidential information. Then, it defines a set of design parameters that can be used to design and implement variants of specific mechanisms in these two classes of mechanisms. This study has implications to the research and practice in e-procurement by providing a systematic approach in designing multi-attribute mechanisms and addressing specific business requirements and strategic concerns.

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