Multi-attribute auction
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History
The earliest research paper about a multi-attribute auction appeared in a 1994 discussion on construction contracts. In 1997, they were discussed in the context of long-term electricity contracts.
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Attributes
The structural elements of a bid are called designated attributes. Attributes may be verifiable, unverifiable, or auctioneer-provided. If bids include a single quality, such as price, the auction is referred to as a single-attribute auction. Generally, bids are prices in English auctions, and confirmations in Dutch and Japanese auctions. In Brazilian auctions, they refer to the numbers of units being traded.
A scoring, or utility function, is essential for multi-attribute auctions, as it calculates a single number from multiple attributes, making bids that vary in multiple ways comparable. This scoring function is announced by the auctioneer to the bidders before the start of the auction.