On bidding for a fixed number of items in a sequence of auctions

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9 Scopus citations


We consider the problem of a firm ("the buyer") that must acquire a fixed number (L) of items. The buyer can acquire these items either at a fixed buy-it-now price in the open market or by participating in a sequence of N > L auctions. The objective of the buyer is to minimize his expected total cost for acquiring all L items. We model this problem as a Markov Decision Process and establish monotonicity properties for the optimal value function and the optimal bidding strategies.

Original languageEnglish (US)
Pages (from-to)76-84
Number of pages9
JournalEuropean Journal of Operational Research
Issue number1
StatePublished - Oct 1 2012

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management


  • Auctions/bidding
  • Dynamic programming
  • Markov Decision Processes
  • Stochastic processes

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