The emergence of auction that supports bids characterized by several attributes is one of the most recent evolutions within auction theory. This paper introduces the multi-attribute and transaction cost into the on-line auction, proposed by Lavi and Nisan. Different from the traditional on-line auction, the buyer makes decision only based on the bids, when each bidder comes one by one. We propose a novel multi-attribute on-line auction mechanism for a limited bidder base. The mechanism consists of two parts: first, evaluation of bidders’ utility with an idea of a scoring rule designed by a buyer and second, the winner determination model. Furthermore, we present the price and utility algorithm, together with its competitive analysis, which is designed for the buyer to decide the trading price and quantities. Finally, we also perform numerical examples showing our results.
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