The Analysis of Bidding Strategies in Multi-attribute Reverse Auction with Risk-averse Suppliers

In this paper, a generalized multi-attribute reverse auction model is introduced and the equilibrium bidding strategies of the risk-averse suppliers are analyzed. In the proposed models, the procured item includes multiple quality attributes and several cost parameters. There is not a linear restriction on the form of the cost function any longer, thus it is adapt to a more complex situation. The equilibrium qualities are only affected by suppliers' cost parameters and the equilibrium price decreases with the risk attitude. In order to reduce the computational complexity of equilibrium price, two concrete formulas are given for the convenience of application in the special cases. At last, three numerical examples are calculated to verify the advised models.