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Multiple-round timber auction design and simulation

Farnoush Farnia, Jean-Marc Frayret, Luc LeBel and Catherine Beaudry

Article (2013)

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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 analysed 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 m3. 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 maximise revenue for the auctioneer.

Uncontrolled Keywords

Timber auction, Sequential auction, Learning strategy, Multi agent system, Allocation

Subjects: 1300 Forest engineering > 1302 Forest operations
1600 Industrial engineering > 1600 Industrial engineering
Department: Department of Mathematics and Industrial Engineering
Research Center: CIRODD - Centre interdisciplinaire de recherche sur l'opérationnalisation du développement durable
Funders: OR@C Research Consortium, CRSNG
PolyPublie URL: https://publications.polymtl.ca/2310/
Journal Title: International Journal of Production Economics (vol. 146, no. 1)
Publisher: Elsevier
DOI: 10.1016/j.ijpe.2013.06.012
Official URL: https://doi.org/10.1016/j.ijpe.2013.06.012
Date Deposited: 03 Oct 2016 11:50
Last Modified: 09 Apr 2024 13:24
Cite in APA 7: Farnia, F., Frayret, J.-M., LeBel, L., & Beaudry, C. (2013). Multiple-round timber auction design and simulation. International Journal of Production Economics, 146(1), 129-141. https://doi.org/10.1016/j.ijpe.2013.06.012

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