Strategic Bidding in Decentralized Collaborative Vehicle Routing

Johan Los; Frederik Schulte; Matthijs T.J. Spaan; Rudy R. Negenborn

doi:10.1007/978-3-031-05359-7_21

Strategic Bidding in Decentralized Collaborative Vehicle Routing

Johan Los, Frederik Schulte^*, Matthijs T.J. Spaan, Rudy R. Negenborn

^*Corresponding author for this work

Research output: Chapter in Book/Conference proceedings/Edited volume › Conference contribution › Scientific › peer-review

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Abstract

Collaboration in transportation is important to reduce costs and emissions, but carriers may have incentives to bid strategically in decentralized auction systems. We investigate what the effect of the auction strategy is on the possible cheating benefits in a dynamic context, such that we can recommend a method with lower chances for carriers to cheat. We consider both a first-price auction system and a second-price auction scheme. Contrary to what was expected, a second-price auction scheme gives more room for successful strategic behaviour, while it also results in more rejected orders. A first-price auction scheme might be useful in practice if the profit shares that are allocated to the winner of an auction are selected carefully.

Original language	English
Title of host publication	Dynamics in Logistics
Subtitle of host publication	Proceedings of the 8th International Conference LDIC 2022, Bremen, Germany
Editors	Michael Freitag, Aseem Kinra, Herbert Kotzab, Nicole Megow
Publisher	Springer
Pages	261-274
ISBN (Electronic)	978-3-031-05359-7
ISBN (Print)	978-3-031-05358-0
DOIs	https://doi.org/10.1007/978-3-031-05359-7_21
Publication status	Published - 2022
Event	LDIC 2022: 8th International Conference on Dynamics in Logistics (Virtual) - Bremen, Germany Duration: 23 Feb 2022 → 25 Feb 2022

Publication series

Name	Lecture Notes in Logistics
ISSN (Print)	2194-8917
ISSN (Electronic)	2194-8925

Conference

Conference	LDIC 2022: 8th International Conference on Dynamics in Logistics (Virtual)
Country/Territory	Germany
City	Bremen
Period	23/02/22 → 25/02/22

Bibliographical note

Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care
Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

Auctions
Collaborative vehicle routing
Decentralized collaborations
Multi-agent system
Strategic behaviour

Access to Document

10.1007/978-3-031-05359-7_21

Los2022_Chapter_StrategicBiddingInDecentralizeFinal published version, 226 KB

Cite this

Los, J., Schulte, F., Spaan, M. T. J., & Negenborn, R. R. (2022). Strategic Bidding in Decentralized Collaborative Vehicle Routing. In M. Freitag, A. Kinra, H. Kotzab, & N. Megow (Eds.), Dynamics in Logistics : Proceedings of the 8th International Conference LDIC 2022, Bremen, Germany (pp. 261-274). (Lecture Notes in Logistics). Springer. https://doi.org/10.1007/978-3-031-05359-7_21

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title = "Strategic Bidding in Decentralized Collaborative Vehicle Routing",

abstract = "Collaboration in transportation is important to reduce costs and emissions, but carriers may have incentives to bid strategically in decentralized auction systems. We investigate what the effect of the auction strategy is on the possible cheating benefits in a dynamic context, such that we can recommend a method with lower chances for carriers to cheat. We consider both a first-price auction system and a second-price auction scheme. Contrary to what was expected, a second-price auction scheme gives more room for successful strategic behaviour, while it also results in more rejected orders. A first-price auction scheme might be useful in practice if the profit shares that are allocated to the winner of an auction are selected carefully.",

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author = "Johan Los and Frederik Schulte and Spaan, {Matthijs T.J.} and Negenborn, {Rudy R.}",

note = "Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.; LDIC 2022: 8th International Conference on Dynamics in Logistics (Virtual) ; Conference date: 23-02-2022 Through 25-02-2022",

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Los, J, Schulte, F , Spaan, MTJ & Negenborn, RR 2022, Strategic Bidding in Decentralized Collaborative Vehicle Routing. in M Freitag, A Kinra, H Kotzab & N Megow (eds), Dynamics in Logistics : Proceedings of the 8th International Conference LDIC 2022, Bremen, Germany. Lecture Notes in Logistics, Springer, pp. 261-274, LDIC 2022: 8th International Conference on Dynamics in Logistics (Virtual), Bremen, Germany, 23/02/22. https://doi.org/10.1007/978-3-031-05359-7_21

Strategic Bidding in Decentralized Collaborative Vehicle Routing. / Los, Johan; Schulte, Frederik ; Spaan, Matthijs T.J. et al.
Dynamics in Logistics : Proceedings of the 8th International Conference LDIC 2022, Bremen, Germany. ed. / Michael Freitag; Aseem Kinra; Herbert Kotzab; Nicole Megow. Springer, 2022. p. 261-274 (Lecture Notes in Logistics).

Research output: Chapter in Book/Conference proceedings/Edited volume › Conference contribution › Scientific › peer-review

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