Bilevel approach for e-bidding auction with regret theory (Q6630060)

In this paper, the authors propose a concept of regret theory to look at multiple issues of e-bidding auctions. In the proposed model, the regret function is used to solve the decision-making problems of suppliers and buyers. The main objective of this theory is to find out the bid which is equally suitable for the supplier and the buyers. The authors reframe this problem by assuming that a buyer is interested only in the lowest price offered by suppliers when determining a bidding price.\N\NThe model captures the various preferences for risk in such auction issues, which are considerably different from the typical auction model based on probability distribution in which maximizing expected utility is the aim. The study results indicate that the suggested decision models should give valuable framework for understanding the different behaviors of decision makers and assist the decision maker in finding the optimal solution according to his attitude regarding partly known information.\N\NFor the entire collection see [Zbl 1532.91004].