The First Use of a Combined-Value Auction for Transportation Services
INFORMS Journal on Applied AnalyticsPublished 1 October 2002
John O. Ledyard, Mark A. Olson, David Porter, Joseph A. Swanson, David P. Torma
Citations247
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TL;DR
SLS is the first procurer of trucking services to use a CVA to reduce its costs, and Experimental economics played a crucial role in the development, sale, and use of the CVA.
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.
Keywords
Decision SciencesEngineeringBusiness, Management and Accounting
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