Multiple-round timber auction design and simulation

Abstract

Maison d'édition:Publisher: Elsevier URL officiel:Official URL:http://dx.doi.org/10.1016/j.ijpe.2013.06.012 Mention légale:Legal notice:In all cases accepted manuscripts should link to the formal publication via its DOI 1 Abstract:This paper presents a multiple-round timber auction simulation, developed in order to study various configurations of auction design. In this study, simultaneous sequential timber auctions are modelled and analyzed using agent-based simulation technology. As there are many individual items in the auction to be sold, the auction designer defines several rounds that are sequential at pre-defined intervals. At each round, the auction designer announces several simultaneous auctions. Since bidders are offered different items at each round, a mathematical linear programing model for selecting the best set of items to bid for is presented. Different bidding patterns are simulated and compared in various setup configurations. The most advanced of these strategies are adaptive and use agent-learning capability. The comparisons include the success rate of winning the auction and the winning price per m 3 . This study suggests an efficient bidding pattern for bidders to bid in order to achieve to their goal and increase their profit.Similarly, in order to increase profit, the auctioneer (i.e., the government) needs to control several auction parameters including the number of auctions per year, the lot size, the auction periodicity, and the number of bidders. This study also suggests parameters configurations that to maximize revenue for the auctioneer.

Agent-based simulation of multiple-round timber combinatorial auction

“…It was used to simulate realistic bidding agents, auctioneer agent, and auction mechanisms, including realistic bidding patterns and the auctioneer's winner determination process. This paper, which extends Farnia et al (2013), explores how the outcomes of combinatorial auctions in terms of selling price per m 3 (i.e., revenue of the seller) and bidders' procurement target achievement can change in different setup configurations. In addition, the study compares the revenue stream of the seller and the target achievement of the bidders of combinatorial auctions and single-unit auctions using multiple simulations.…”

“…In order to study the impacts of various configurations of auctions in the Québec timber industry, Farnia et al (2013) used agent-based simulation. In particular, we modelled a multiple-round single-unit first-price sealed-bid timber auction system using different types of bidder agents (i.e., reactive agent, learning agent, adaptive agent).…”

“…The simulation models presented hereafter builds up on the model proposed in Farnia et al (2013) by including all the necessary elements required for the simulation of combinatorial timber auction. This section presents this model.…”

“…For each auction, the bidders bid on any combination of products composing the stand. In order to do that, bidder agents have specific behaviours detailed in Farnia et al (2013) and outlined in Section 3.3. In D r a f t brief, bidder agents have a random behaviour that is between a pure adaptive behaviour (i.e., capable of adapting the value of their bid according to their goal achievement level and the time left to achieve it) and pure learning behaviour (i.e., capable of adjusting the value of their bid according to the market value inferred through past auction outcomes).…”

Time-based combinatorial auction for timber allocation and delivery coordination

“…Many types of auction models have been used to solve timber allocation problems and to ensure an accurate market price (Mead (1967), Hansen (1985), Paarsch (1991), Elyakime et al (1994Elyakime et al ( , 1997, Baldwin et al (1997), Haile (2001), Athey et al (2011)). Farnia et al (2013) simulated and designed an approach for multiple-round timber Auction. Different bidding strategies were simulated and compared in various auction setup configurations.…”