Optimal auctions for multi-unit procurement with volume discount bids

摘要

In this paper, we design an optimal procurement mechanism for procuring multiple units of a single homogeneous item based on volume discount bids submitted by rational and intelligent suppliers. We develop an elegant auction mechanism, VD-OPT, that minimises the cost to the buyer, satisfying at the same time 1. Bayesian Incentive Compatibility (BIC). 2.interim individual rationality.