A Decision Procedure for Bundle Purchasing with Incomplete Information on Future Prices

Download
  1. (PDF, 286 KB)
  2. Get@NRC: A Decision Procedure for Bundle Purchasing with Incomplete Information on Future Prices (Opens in a new window)
AuthorSearch for: ; Search for:
TypeArticle
Journal titleInternational Journal of Electronic Commerce
Volume8
Issue4
Subjectbundle procurement; comparison shopping; protocols; purchasing-decision procedure; utility theory
AbstractThis paper introduces the on-line bundle-purchasing problem (OBPP) as a new computational challenge induced by e-commerce technology. The task of the OBPP is to decide which of many satisfactory combinations (bundles) of items should be purchased, from whom, and when, to maximize the buyer's overall satisfaction. Satisfaction, formalized as multi-attribute utility, includes attitudes toward quality, reputation, and risk. The Prequote-Quote-Rescind (PQR) protocol communicates probabilistic and temporal information on the future prices and availabilities of items. A comparison set, defined as a set of bundles in which all items are available for a fixed interval and their prices are known, determines future intervals when purchase decisions will be fully informed. A decision procedure is provided that makes effective use of comparison sets and improves a buyer's expected utility compared with a naive decision procedure.
Publication date
LanguageEnglish
AffiliationNRC Institute for Information Technology; National Research Council Canada
Peer reviewedNo
NRC number47143
NPARC number8913989
Export citationExport as RIS
Report a correctionReport a correction
Record identifier6b919fa2-cfa5-4b4b-a2df-c0abfde4115b
Record created2009-04-22
Record modified2016-05-09
Bookmark and share
  • Share this page with Facebook (Opens in a new window)
  • Share this page with Twitter (Opens in a new window)
  • Share this page with Google+ (Opens in a new window)
  • Share this page with Delicious (Opens in a new window)