Impact of reputation information sharing in an auction-based job allocation model for small and medium-sized enterprises

• Published in: International journal of production research Vol. 44; no. 9; pp. 1777 - 1798
• Main Authors: Sampath, K., Saygin, C., Grasman, S. E., Leu, M. C.
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis Group 01.05.2006; Washington, DC Taylor & Francis; Taylor & Francis LLC
• Subjects: Applied sciences; Auction-based job allocation; Auctions; Business to business commerce; Efficiency; Exact sciences and technology; Firm modelling; Information sharing; Multi-agent systems; Operational research and scientific management; Operational research. Management science; Reputation information sharing; Reputations; Small business; Studies; Trust systems; Multiagent system; Economic index; Reputation information sharing; Information system; Auction-based job allocation; Reputation; Trust systems; Job management; Reverse auction; Small medium sized firm; Multi-agent systems
• ISSN: 0020-7543; 1366-588X
• DOI: 10.1080/00207540500410051

This research investigates the impact of reputation information sharing in an auction-based job allocation system using a multi-agent based simulation model based on three performance measures: economic efficiency, throughput index, and penalty index. Two forms of reputation information sharing systems, dyadic and public, were implemented and studied. Dyadic reputation systems deal with one-to-one information sharing, while public reputation systems deal with many-to-many information sharing. The paper proposes a hybrid auction mechanism, which is a combination of the sealed bid and reverse auction mechanisms. Analysis of the simulation results shows that reputation information sharing benefits the system tremendously by increasing the overall economic efficiency and throughput index, while decreasing the penalty index of the system. The results also show that as the significance of reputation in the market increases, the benefits realised in terms of economic efficiency and throughput index also increases.