Gregor Berz, Florian Rupp, Brian Sieben: How the “Auction Cube” Supports the Selection of Auction Designs in Industrial Procurement

It is well known that correctly applied reverse auctions offer large commercial potential to procurement departments. However, the sheer number of available auction types often overwhelms users in practice. And since the implications of a wrongly chosen auction type are equally well known, the overall usage of reverse auctions falls significantly short of its potential. This paper proposes a novel method to guide users in selecting the most appropriate combination of basic auction forms for single lot events, taking into account both market and supplier criteria.