Interest in electronic reverse auctions has escalated in importance in both academic and practitioner circles. These auctions are envisioned as a new and more effective method for B2B transactions. While there are numerous applications of traditional price-based reverse auctions, the incorporation of multiple supplier attributes into the auction process has been limited in spite of their argued importance in the literature. The current research develops a framework for designing and implementing multi-attribute reverse auctions in B2B exchanges. More specifically, the article addresses responsibilities and relationships among various players in the auction that include e-broker, buyer and supplier from a client-server perspective, various auction formats and their relative advantages and disadvantages, winner determination methods, and security issues. In summary, a sequence of steps is provided for companies interested in designing and implementing a multi-attribute reverse auction.
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