Auctioning transformable goods

Andrea Giovannucci, Juan A. Rodríguez-Aguilar, Jesús Cerquides

Abstract: In this paper we explore whether an auctioneer/buyer may benefit from introducing his transformability relationships (some goods can be transformed into others at a transformation cost) into multi-unit combinatorial reverse auctions. Thus, we quantitatively assess the potential savings the auctioneer/buyer may obtain with respect to combinatorial reverse auctions that do not consider tranformability relationships.