OPTIMAL MULTI-ATTRIBUTE AUCTIONS FOR DIVISIBLE GOODS

2011 ◽  
Vol 10 (05) ◽  
pp. 891-911 ◽  
Author(s):  
CONGJUN RAO ◽  
YONG ZHAO ◽  
YANG CHEN
Keyword(s):  
Utility Function ◽  
Optimal Allocation ◽  
Sufficient Conditions ◽  
Procurement Auctions ◽  
Optimal Model ◽  
Procurement Auction ◽  
Auction Mechanism ◽  
Optimal Mechanism ◽  
Divisible Goods ◽  
Allocation Strategies

In this paper, the problem of multi-attribute procurement auction of divisible goods is investigated, and an optimal mechanism of multi-attribute auction, which enables negotiation on several attributes in addition to the price of a divisible good, is designed. First, several important assumptions of multi-attribute procurement auctions of divisible goods are given, and the buyer's utility function and the supplier's utility function are defined. Then, a set of sufficient conditions for feasible multi-attribute auction mechanism are given. Based on these conditions, an optimal model of multi-attribute procurement auction whose goal is to maximize the buyer's expected utility, is established. By solving this model, the optimal allocation strategies are obtained. Third, the properties of the optimal multi-attribute auction are discussed. Finally, a multi-attribute auction example about the steam coal procurement is given to show how to implement the optimal multi-attribute auction mechanism.

Optimal allocation of relevations in coherent systems

2021 ◽  
Vol 58 (4) ◽  
pp. 1152-1169
Author(s):  
Rongfang Yan ◽  
Jiandong Zhang ◽  
Yiying Zhang
Keyword(s):  
Optimal Allocation ◽  
Necessary Conditions ◽  
Stochastic Order ◽  
Coherent Systems ◽  
Stochastic Comparisons ◽  
Hazard Rate Order ◽  
Usual Stochastic Order ◽  
Special Cases ◽  
Sufficient And Necessary Conditions ◽  
Allocation Strategies

AbstractIn this paper we study the allocation problem of relevations in coherent systems. The optimal allocation strategies are obtained by implementing stochastic comparisons of different policies according to the usual stochastic order and the hazard rate order. As special cases of relevations, the load-sharing and minimal repair policies are further investigated. Sufficient (and necessary) conditions are established for various stochastic orderings. Numerical examples are also presented as illustrations.

Optimal allocation of a coherent system with statistical dependent subsystems

2021 ◽  
pp. 1-20
Author(s):  
Bin Lu ◽  
Jiandong Zhang ◽  
Rongfang Yan
Keyword(s):  
Hazard Rate ◽  
Optimal Allocation ◽  
Stochastic Order ◽  
Sufficient Conditions ◽  
Parallel Systems ◽  
Coherent System ◽  
Allocation Policy ◽  
Usual Stochastic Order ◽  
Series Systems ◽  
Parallel Series

Abstract This paper studies the optimal allocation policy of a coherent system with independent heterogeneous components and dependent subsystems, the systems are assumed to consist of two groups of components whose lifetimes follow proportional hazard (PH) or proportional reversed hazard (PRH) models. We investigate the optimal allocation strategy by finding out the number $k$ of components coming from Group A in the up-series system. First, some sufficient conditions are provided in the sense of the usual stochastic order to compare the lifetimes of two-parallel–series systems with dependent subsystems, and we obtain the hazard rate and reversed hazard rate orders when two subsystems have independent lifetimes. Second, similar results are also obtained for two-series–parallel systems under certain conditions. Finally, we generalize the corresponding results to parallel–series and series–parallel systems with multiple subsystems in the viewpoint of the minimal path and the minimal cut sets, respectively. Some numerical examples are presented to illustrate the theoretical findings.

scholarly journals Hicksian Welfare Measures and the Normative Endowment Effect

2010 ◽  
Vol 2 (4) ◽  
pp. 171-194 ◽  
Author(s):  
Thomas A Weber
Keyword(s):  
Utility Function ◽  
Sufficient Conditions ◽  
Endowment Effect ◽  
Indirect Utility ◽  
Compensating Variation ◽  
Equivalent Variation ◽  
Indirect Utility Function ◽  
Welfare Measures ◽  
Empirical Implications ◽  
Hicksian Welfare

We show that the Hicksian welfare measures of compensating variation and equivalent variation coincide if one of them is evaluated at a compensated income. The measures are nondecreasing in income if the varied attribute and income are complementary, and indirect utility is concave in income. Income monotonicity implies the normative endowment effect, where the equivalent variation exceeds the compensating variation. We provide sufficient conditions for the normative endowment effect and discuss empirical implications. In the global absence of a strict (anti-) endowment effect, both Hicksian welfare measures must be independent of income and the indirect utility function additively separable in income. (JEL D11, D63)

scholarly journals Multi-Objective Optimal Model for Task Scheduling and Allocation in a Two Machines Robotic Cell Considering Breakdowns

2020 ◽  
Keyword(s):  
Optimal Allocation ◽  
Solution Procedure ◽  
Optimal Solutions ◽  
Operational Cost ◽  
Optimal Model ◽  
Robotic Cell ◽  
Swarm Optimization ◽  
Multi Objective ◽  
Processing Times ◽  
Two Machines

This paper aimed to demonstrate a metaheuristic as a solution procedure to schedule a two-machine, identical parts robotic cell under breakdown. The proposed previous model enabled one to determine optimal allocation of operations to the machines and corresponding processing times of each machine. For the proposed mathematical model to minimize cycle time and operational cost, multi-objective particle swarm optimization (MOPSO) algorithm was provided. Through some numerical examples, the optimal solutions were compared with the previous results. MOPSO algorithm could find the solutions for problems embeds up to 50 operations in a rationale time.

scholarly journals A Stochastic Optimization Model for Agricultural Irrigation Water Allocation Based on the Field Water Cycle

Water ◽  
2018 ◽  
Vol 10 (8) ◽  
pp. 1031 ◽  
Author(s):  
Zehao Yan ◽  
Mo Li
Keyword(s):  
Irrigation Water ◽  
Water Allocation ◽  
Optimal Allocation ◽  
Water Cycle ◽  
Decision Makers ◽  
Irrigation District ◽  
Agricultural Irrigation ◽  
Dynamic Changes ◽  
Irrigation Water Allocation ◽  
Allocation Strategies

Agricultural water scarcity is a global problem and this reinforces the need for optimal allocation of irrigation water resources. However, decision makers are challenged by the complexity of fluctuating stream condition and irrigation quota as well as the dynamic changes of the field water cycle process, which make optimal allocation more complex. A two-stage chance-constrained programming model with random parameters in the left- and right-hand sides of constraints considering field water cycle process has been developed for agricultural irrigation water allocation. The model is capable of generating reasonable irrigation allocation strategies considering water transformation among crop evapotranspiration, precipitation, irrigation, soil water content, and deep percolation. Moreover, it can deal with randomness in both the right-hand side and the left-hand side of constraints to generate schemes under different flow levels and constraint-violation risk levels, which are informative for decision makers. The Yingke irrigation district in the middle reaches of the Heihe River basin, northwest China, was used to test the developed model. Tradeoffs among different crops in different time periods under different flow levels, and dynamic changes of soil moisture and deep percolation were analyzed. Scenarios with different violating probabilities were conducted to gain insight into the sensitivity of irrigation water allocation strategies on water supply and irrigation quota. The performed analysis indicated that the proposed model can efficiently optimize agricultural irrigation water for an irrigation district with water scarcity in a stochastic environment.

scholarly journals A Simple Auction Mechanism for the Optimal Allocation of the Commons

2008 ◽  
Vol 98 (1) ◽  
pp. 496-518 ◽  
Author(s):  
Juan-Pablo Montero
Keyword(s):  
Optimal Allocation ◽  
Pollution Abatement ◽  
Dominant Strategy ◽  
Truth Telling ◽  
Uniform Price ◽  
Auction Mechanism ◽  
Sealed Bid ◽  
Regulated Firms ◽  
The Commons ◽  
Number Of Firms

Efficient regulation of the commons requires information about the regulated firms that is rarely available to regulators (e.g., cost of pollution abatement). This paper proposes a simple mechanism that implements the first-best for any number of firms: a uniform price, sealed-bid auction of an endogenous number of (transferable) licenses with a fraction of the auction revenues given back to firms. Paybacks, which rapidly decrease with the number of firms, are such that truth-telling is a dominant strategy regardless of whether firms behave non-cooperatively or collusively. The mechanism also provides firms with incentives to invest in socially optimal R&D. (JEL D44, L51, Q21)

scholarly journals Reliability as Main Factor for Future Value Creation

2017 ◽  
Author(s):  
Aleksandras Vytautas Rutkauskas ◽  
Viktorija Stasytytė ◽  
Andrius Rutkauskas
Keyword(s):  
Stochastic Optimization ◽  
Utility Function ◽  
Optimal Allocation ◽  
Investment Decision ◽  
Value Added ◽  
Optimal Investment ◽  
Currency Markets ◽  
Reliability Management ◽  
Investment Decision Making ◽  
Optimal Resource

The main objective of the paper is to present the solution to the problem of possibilities’ reliability management, which is an important problem of uncertainty (risk) economics. Also, the paper aims to propose adequate methods of stochastic optimization and reveal their broad implementation possibilities. Along with that, the concept of utility function is being disclosed, when we take into account not only the possibilities of prices and costs, but also their reliability, in order to achieve the highest value added in this process. The original methods of stochastic optimization are used, while searching for the optimal allocation of invested capital among the investment assets. Adequate investment portfolio is treated as theoretically sound and practically effective instrument for investment decision-making in capital and currency markets, as well as for other problems related with optimal resource allocation. The adequate portfolio supplements the modern portfolio by adding the third portfolio parameter – the reliability of return. Also, the utility function based on return, reliability and risk is used to find the optimal investment possibility for particular investor. The formed portfolio solutions were tested in the markets of NYSE, UK and France.

scholarly journals Exploring the Physiological mechanisms and Ecological Consequences of Energetic Tradeoffs: An Integative Study of the Influences of Avian Malarial Infection on Thermogenic Performance

2013 ◽  
Vol 36 ◽  
pp. 123-127
Author(s):  
Mathew Carling
Keyword(s):  
Life History Theory ◽  
Optimal Allocation ◽  
Limited Resource ◽  
Allocation Of Resources ◽  
Physiological Mechanisms ◽  
Ecological Consequences ◽  
Trade Offs ◽  
Variable Environments ◽  
The Face ◽  
Allocation Strategies

Survival in variable environments often requires careful allocation of resources to competing physiological and behavioral functions. Because these competing processes often have additive energetic costs (Hawley et al. 2012), a limited resource pool forces individuals to make difficult trade-off decisions regarding energetic investments (Lochmiller and Deerenberg 2000). These trade-offs are a cornerstone of life-history theory that is aimed at determining the optimal allocation strategies in variable environments (Ricklefs and Wikelski 2002), and understanding their physiological and ecological consequences has renewed poignancy in the face of the unprecedented rate of anthropogenic environmental change occurring across the planet.

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