Sealed-Bid Auctions

Case Study

F.D.J. van Schaik, J.P.C. Kleijnen

Research output: Working paperDiscussion paperOther research output

246 Downloads (Pure)

Abstract

Auctions are an important link in supply chains.This paper presents an empirical investigation of a single-shot simultaneous or sealed-bid auction.This case study concerns the mussel trade in Yerseke, the Netherlands.It surprisingly demonstrates that companies buying large quantities of mussels pay higher unit prices.It also reveals that auction prices react sharply to changes in annual supply and that seasonality causes a bullwhip effect.Finally, purchase managers perform significantly differently from each other, when accounting for the above price factors and "hedonic price" factors, which represent objectively measured product characteristics.To derive these conclusions, this paper uses a simple linear regression model that: (i) extracts information from a database of 28,017 mussel lots enabling the rejection of four intuitive null-hypotheses; (ii) has signs for all explanatory variables that are correct from the viewpoint of economics or marine biology; and (iii) provides a novel tool for objective performance evaluation of purchase managers.
Original languageEnglish
Place of PublicationTilburg
PublisherOperations research
Number of pages33
Volume2001-73
Publication statusPublished - 2001

Publication series

NameCentER Discussion Paper
Volume2001-73

Fingerprint

Managers
Auctions
Sealed-bid auction
Purchase
Seasonality
Linear regression model
Factor prices
Hedonic prices
Product characteristics
Data base
Bullwhip effect
Economics
Performance evaluation
Empirical investigation
Factors
Supply chain
The Netherlands

Keywords

  • auctions
  • performance measurement
  • purchasing
  • supply chain

Cite this

van Schaik, F. D. J., & Kleijnen, J. P. C. (2001). Sealed-Bid Auctions: Case Study. (CentER Discussion Paper; Vol. 2001-73). Tilburg: Operations research.
van Schaik, F.D.J. ; Kleijnen, J.P.C. / Sealed-Bid Auctions : Case Study. Tilburg : Operations research, 2001. (CentER Discussion Paper).
@techreport{dd93bf40d7904fd1ac2cf1f770825935,
title = "Sealed-Bid Auctions: Case Study",
abstract = "Auctions are an important link in supply chains.This paper presents an empirical investigation of a single-shot simultaneous or sealed-bid auction.This case study concerns the mussel trade in Yerseke, the Netherlands.It surprisingly demonstrates that companies buying large quantities of mussels pay higher unit prices.It also reveals that auction prices react sharply to changes in annual supply and that seasonality causes a bullwhip effect.Finally, purchase managers perform significantly differently from each other, when accounting for the above price factors and {"}hedonic price{"} factors, which represent objectively measured product characteristics.To derive these conclusions, this paper uses a simple linear regression model that: (i) extracts information from a database of 28,017 mussel lots enabling the rejection of four intuitive null-hypotheses; (ii) has signs for all explanatory variables that are correct from the viewpoint of economics or marine biology; and (iii) provides a novel tool for objective performance evaluation of purchase managers.",
keywords = "auctions, performance measurement, purchasing, supply chain",
author = "{van Schaik}, F.D.J. and J.P.C. Kleijnen",
note = "Pagination: 33",
year = "2001",
language = "English",
volume = "2001-73",
series = "CentER Discussion Paper",
publisher = "Operations research",
type = "WorkingPaper",
institution = "Operations research",

}

van Schaik, FDJ & Kleijnen, JPC 2001 'Sealed-Bid Auctions: Case Study' CentER Discussion Paper, vol. 2001-73, Operations research, Tilburg.

Sealed-Bid Auctions : Case Study. / van Schaik, F.D.J.; Kleijnen, J.P.C.

Tilburg : Operations research, 2001. (CentER Discussion Paper; Vol. 2001-73).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Sealed-Bid Auctions

T2 - Case Study

AU - van Schaik, F.D.J.

AU - Kleijnen, J.P.C.

N1 - Pagination: 33

PY - 2001

Y1 - 2001

N2 - Auctions are an important link in supply chains.This paper presents an empirical investigation of a single-shot simultaneous or sealed-bid auction.This case study concerns the mussel trade in Yerseke, the Netherlands.It surprisingly demonstrates that companies buying large quantities of mussels pay higher unit prices.It also reveals that auction prices react sharply to changes in annual supply and that seasonality causes a bullwhip effect.Finally, purchase managers perform significantly differently from each other, when accounting for the above price factors and "hedonic price" factors, which represent objectively measured product characteristics.To derive these conclusions, this paper uses a simple linear regression model that: (i) extracts information from a database of 28,017 mussel lots enabling the rejection of four intuitive null-hypotheses; (ii) has signs for all explanatory variables that are correct from the viewpoint of economics or marine biology; and (iii) provides a novel tool for objective performance evaluation of purchase managers.

AB - Auctions are an important link in supply chains.This paper presents an empirical investigation of a single-shot simultaneous or sealed-bid auction.This case study concerns the mussel trade in Yerseke, the Netherlands.It surprisingly demonstrates that companies buying large quantities of mussels pay higher unit prices.It also reveals that auction prices react sharply to changes in annual supply and that seasonality causes a bullwhip effect.Finally, purchase managers perform significantly differently from each other, when accounting for the above price factors and "hedonic price" factors, which represent objectively measured product characteristics.To derive these conclusions, this paper uses a simple linear regression model that: (i) extracts information from a database of 28,017 mussel lots enabling the rejection of four intuitive null-hypotheses; (ii) has signs for all explanatory variables that are correct from the viewpoint of economics or marine biology; and (iii) provides a novel tool for objective performance evaluation of purchase managers.

KW - auctions

KW - performance measurement

KW - purchasing

KW - supply chain

M3 - Discussion paper

VL - 2001-73

T3 - CentER Discussion Paper

BT - Sealed-Bid Auctions

PB - Operations research

CY - Tilburg

ER -

van Schaik FDJ, Kleijnen JPC. Sealed-Bid Auctions: Case Study. Tilburg: Operations research. 2001. (CentER Discussion Paper).