Artificial Intelligence in Purchasing: Facilitating Mechanism Design-based Negotiations

References

• Adams, S., I. Arel, J. Bach, R. Coop, R. Furlan, B. Goertzel, J. Sowa, A. Samsonovich, M. Scheutz, and M. Schlesinger. 2012. Mapping the Landscape Of Human-Level Artificial General Intelligence. AI Magazine 33 (1):25–42. doi:10.1609/aimag.v33i1.2322.
   Web of Science ®Google Scholar
• Albert, T., J. Wehinger, and J. Fraterman. 2017. Die Beschaffung ist tot – Es lebe die Beschaffung [Procurement is dead - long live procurement]. In Innovative Produkte und Dienstleistungen in der Mobilität: Technische und betriebswirtschaftliche Aspekte [Innovative products and services in mobility: Technical and business aspects], ed. H. Proff and T. M. Fojcik, 51–66. Wiesbaden: Springer Fachmedien Wiesbaden.
   Google Scholar
• Baarslag, T., and M. Kaisers. 2017. The value of information in automated negotiation: A decision model for eliciting user preferences. In Proceedings of the 16th Conference on autonomous agents and multi agent systems, ed. S. Das, E. Durfee, K. Larson, and M. Winikoff, 391–400. Richland, SC: International Foundation for Autonomous Agents and Multiagent Systems.
   Google Scholar
• Berz, G. 2014. Spieltheoretische Verhandlungs- und Auktionsstrategien: Mit Praxisbeispielen von Internetauktionen bis Investmentbanking [Game theory bargaining and auction strategies: Practical examples from internet auctions to investment banking]. Stuttgart: Schäffer-Poeschel Verlag.
   Google Scholar
• Bini, S. A. 2018. Artificial intelligence, machine learning, deep learning, and cognitive computing: What do these terms mean and how will they impact health care? The Journal of Arthroplasty,33 (8), 2358-2361.
   Google Scholar
• Carbonneau, R. A., G. E. Kersten, and R. M. Vahidov. 2011. Pairwise issue modeling for negotiation counteroffer prediction using neural networks. Decision Support Systems 50 (2):449–59. doi:10.1016/j.dss.2010.11.002.
   Web of Science ®Google Scholar
• Carey, M. A., and J.-E. Asbury. 2016. Focus group research. London, New York: Routledge.
   Google Scholar
• Chen, Y., and T. Zhang. 2011. Equilibrium price dispersion with heterogeneous searchers. International Journal of Industrial Organization 29 (6):645–54. doi:10.1016/j.ijindorg.2011.03.007.
   Web of Science ®Google Scholar
• Colman, A. M. 2008. Game theory and its applications in the social and biological sciences. London: Routledge.
   Google Scholar
• Dash, R. K., N. R. Jennings, and D. C. Parkes. 2003. Computational-mechanism design: A call to arms. IEEE Intelligent Systems 18 (6):40–47. doi:10.1109/MIS.2003.1249168.
   Web of Science ®Google Scholar
• Dixon, H. D. 2001. Some thoughts on economic theory and artificial intelligence. In Surfing economics: Essays for the enquiring economist, ed. H. D. Dixon, 161-176. Basingstoke: Palgrave Macmillan.
   Google Scholar
• Drozak Consulting. 2014. Spieltheorie im Einkauf [Game Theory in Procurement]. In trend - drive for purchase, Q4, 1–12. Berlin: Drozak Consulting GmbH.
   Google Scholar
• Elkind, E., and K. Leyton-Brown. 2010. Algorithmic game theory and Artificial Intelligence. AI Magazine 31 (4):9–12. doi:10.1609/aimag.v31i4.2310.
   Google Scholar
• Ellram, L. M. 2000. Purchasing and supply management’s participation in the target costing process. Journal of Supply Chain Management 36 (1):39–51. doi:10.1111/j.1745-493X.2000.tb00076.x.
   Google Scholar
• Geiger, I. 2017. A model of negotiation issue–based tactics in business-to-business sales negotiations. Industrial Marketing Management 64 (4):91–106. doi:10.1016/j.indmarman.2017.02.003.
   Google Scholar
• Geissbauer, R., J. Vedso, and S. Schrauf. 2016. 2016 Global industry 4.0 survey - Industry 4.0: Building the digital enterprise. PricewaterhouseCoopers.
   Google Scholar
• Gigerenzer, G., and R. Selten. 2002. Bounded rationality: The adaptive toolbox. Cambridge, Massachusetts: The MIT press.
   Google Scholar
• Güth, W., R. Ivanova-Stenzel, and E. Wolfstetter. 2005. Bidding behavior in asymmetric auctions: An experimental study. European Economic Review 49 (7):1891–913. doi:10.1016/j.euroecorev.2004.09.003.
   Web of Science ®Google Scholar
• Han, Z., D. Niyato, W. Saad, T. Basar, and A. Hjorungnes. 2012. Game theory in wireless communications and networks: Theory, models, and applications. Cambridge: Cambridge University Press.
   Google Scholar
• Haugeland, J. 1989. Artificial intelligence: The very idea. Cambridge, MA: MIT Press.
   Google Scholar
• Hehenkamp, B. 2007. Die Grundlagen der Mechanismus-Design-Theorie [The foundations of mechanism design theory]. Wirtschaftsdienst 87 (11):768–72. doi:10.1007/s10273-007-0732-z.
   Google Scholar
• Hesping, F. H., and H. Schiele. 2016. Matching tactical sourcing levers with the Kraljič matrix: Empirical evidence on purchasing portfolios. International Journal of Production Economics 177:101–17. doi:10.1016/j.ijpe.2016.04.011.
   Web of Science ®Google Scholar
• Hoffmann, P. 2011. Innovative supply risk management: The development of a comprehensive supply risk management system. Twente. Enschede, NL: CPI Wöhrmann.
   Google Scholar
• Hoffmann, P., H. Schiele, and K. Krabbendam. 2013. Uncertainty, supply risk management and their impact on performance. Journal of Purchasing and Supply Management 19 (3):199–211. doi:10.1016/j.pursup.2013.06.002.
   Web of Science ®Google Scholar
• Horn, P., H. Schiele, and W. Werner. 2013. The ugly twins: Failed low-wage-country sourcing projects and their expensive replacements. Journal of Purchasing and Supply Management 19 (1):27–38. doi:10.1016/j.pursup.2012.09.001.
   Web of Science ®Google Scholar
• Huang, H., R. J. Kauffman, H. Xu, and L. Zhao. 2013. A hybrid mechanism for heterogeneous e-procurement involving a combinatorial auction and bargaining. Electronic Commerce Research and Applications 12 (3):181–94. doi:10.1016/j.elerap.2013.03.006.
   Web of Science ®Google Scholar
• Hüttinger, L., H. Schiele, D. Schröer, and B. Wagner. 2014. Exploring the antecedents of preferential customer treatment by suppliers: A mixed methods approach. Supply Chain Management: An International Journal 19 (5/6):697–721. doi:10.1108/SCM-06-2014-0194.
   Web of Science ®Google Scholar
• Jackson, O. M. 2001. A crash course in implementation theory. Social Choice and Welfare 18 (4):655–708. doi:10.1007/s003550100152.
   Web of Science ®Google Scholar
• Jazayeriy, H., M. Azmi-Murad, N. Sulaiman, and N. I. Udzir. 2012. Generating pareto-optimal offers in bilateral automated negotiation with one-Side uncertain importance weights. Computing and Informatics 31 (6):1235–53.
   Web of Science ®Google Scholar
• Jordan, M. I., and T. M. Mitchell. 2015. Machine learning: Trends, perspectives, and prospects. Science 349 (6245):255–60. doi:10.1126/science.aaa8415.
   PubMed Web of Science ®Google Scholar
• Kaufmann, L., and C. R. Carter. 2004. Deciding on the mode of negotiation: To auction or not to auction electronically. The Journal of Supply Chain Management 40 (1):15–26. doi:10.1111/j.1745-493X.2004.tb00166.x.
   Google Scholar
• Kwong, C. K., H. Jiang, and X. G. Luo. 2016. AI-based methodology of integrating affective design, engineering, and marketing for defining design specifications of new products. Engineering Applications of Artificial Intelligence 47:49–60. doi:10.1016/j.engappai.2015.04.001.
   Web of Science ®Google Scholar
• Lasaulce, S., and H. Tembine. 2011. Game theory and learning for wireless networks: Fundamentals and applications. Oxford: Academic Press.
   Google Scholar
• Lau, R. Y. K. 2007. Towards a web services and intelligent agents-based negotiation system for B2B eCommerce. Electronic Commerce Research and Applications 6 (3):260–73. doi:10.1016/j.elerap.2006.06.007.
   Web of Science ®Google Scholar
• Leu, -S.-S., P. V. Hong Son, and P. T. Hong Nhung. 2015. Optimize negotiation price in construction procurement using Bayesian fuzzy game model. KSCE Journal of Civil Engineering 19 (6):1566–72. doi:10.1007/s12205-014-0522-2.
   Web of Science ®Google Scholar
• Lichtblau, K., V. Stich, R. Bertenrath, M. Blum, M. Bleider, A. Millack, … M. Schröter. 2015. Industrie 4.0-readiness. Aachen: IMPULS-Stiftung des VDMA.
   Google Scholar
• Lin, -C.-C., S.-C. Chen, and Y.-M. Chu. 2011. Automatic price negotiation on the web: An agent-based web application using fuzzy expert system. Expert Systems with Applications 38 (5):5090–100. doi:10.1016/j.eswa.2010.09.142.
   Web of Science ®Google Scholar
• Luce, R. D., and H. Raiffa. 1989. Games and decisions: Introduction and critical survey. New York: Dover Publications.
   Google Scholar
• Luger, G. F. 2009. Artificial intelligence: Structures and strategies for complex problem solving. Boston: Pearson Education.
   Google Scholar
• Maskin, E. S. 2008. Mechanism design: How to implement social goals. The American Economic Review 98 (3):567–76. doi:10.1257/aer.98.3.567.
   Web of Science ®Google Scholar
• McCarthy, J., and P. J. Hayes. 1969. Some philosophical problems from the standpoint of artificial intelligence. In Machine intelligence, ed. B. Meltzer and D. Michie, 463–502. Edinburgh: Edinburgh University Press.
   Google Scholar
• McCarthy, J., M. L. Minsky, N. Rochester, and C. E. Shannon. 2006. A proposal for the Dartmouth summer research project on artificial intelligence, August 31, 1955. AI Magazine 27 (4):12–14.
   Web of Science ®Google Scholar
• Metty, T., R. Harlan, Q. Samelson, T. Moore, T. Morris, R. Sorensen, J. Robbins, O. Raskina, R. Schneur, and J. Kanner. 2005. Reinventing the supplier negotiation process at motorola. Interfaces 35 (1):7–23. doi:10.1287/inte.1040.0119.
   Web of Science ®Google Scholar
• Michalski, R. S., J. G. Carbonell, and T. M. Mitchell. 2013. Machine learning - An artificial intelligence approach. Berlin Heidelberg: Springer Verlag.
   Google Scholar
• Monostori, L. 2014. Cyber-physical production systems: Roots, expectations and R&D challenges. Procedia CIRP 17:9–13. doi:10.1016/j.procir.2014.03.115.
   Google Scholar
• Moss, S. 1992. Introduction. In Artificial intelligence and economic analysis: Prospects and problems, ed. S. Moss and J. Rae, 1-10. Aldershot: Edward Elgar Publishing Limited.
   Google Scholar
• Murphy, K. 2012. Machine learning: A probabilistic perspective. Cambridge: MIT Press.
   Google Scholar
• Myerson, R. B. 1991. Game theory: Analysis of Conflict. Cambridge: Harvard University Press.
   Google Scholar
• Nayak, R., and R. Padhye. 2018. Artificial intelligence and its application in the apparel industry. In R. Nayak & R. Padhye (Eds.), Automation in Garment Manufacturing (pp. 109-138). Duxford, UK: Woodhead Publishing.
   Google Scholar
• Negnevitsky, M. 2005. Artificial Intelligence: A Guide to Intelligent Systems. Harlow: Pearson Education.
   Google Scholar
• Nisan, N. 2007. Introduction to Mechanism Design (for Computer Scientists). In N. Nisan, T. Roughgarden, E. Tardos, & V. V. Vazirani (Eds.), Algorithmic Game Theory (pp. 209-242). Cambridge: Cambridge University Press.
   Google Scholar
• Obermeyer, Z., and E. J. Emanuel. 2016. Predicting the future — Big data, machine learning, and clinical medicine. The New England Journal of Medicine 375 (13):1216–19. doi:10.1056/NEJMp1606181.
   PubMed Web of Science ®Google Scholar
• Pagliarini, R. R. R. 2006. The World Café shaping our futures through conversations that matter. Journal of Organizational Change Management 19 (2):266–68. doi:10.1108/09534810610648951.
   Web of Science ®Google Scholar
• Parkes, D. C., R. Cavallo, F. Constantin, and S. Singh. 2010. Dynamic incentive mechanisms. AI Magazine 31 (4):79–94. doi:10.1609/aimag.v31i4.2316.
   Web of Science ®Google Scholar
• Pham, D. T., and P. T. N. Pham. 1999. Artificial intelligence in engineering. International Journal of Machine Tools and Manufacture 39 (6):937–49. doi:10.1016/S0890-6955(98)00076-5.
   Web of Science ®Google Scholar
• Prasad, A. S., and S. Rao. 2014. A mechanism design approach to resource procurement in cloud computing. IEEE Transactions on Computers 63 (1):17–30. doi:10.1109/TC.2013.106.
   Web of Science ®Google Scholar
• Pulles, N. J., H. Schiele, J. Veldman, and L. Hüttinger. 2016. The impact of customer attractiveness and supplier satisfaction on becoming a preferred customer. Industrial Marketing Management 54:129–40. doi:10.1016/j.indmarman.2015.06.004.
   Web of Science ®Google Scholar
• Pulles, N. J., J. Veldman, and H. Schiele. 2014. Identifying innovative suppliers in business networks: An empirical study. Industrial Marketing Management 43 (3):409–18. doi:10.1016/j.indmarman.2013.12.009.
   Web of Science ®Google Scholar
• Pumpe, A., and F. Vallée. 2017. A typology for selecting an appropriate total landed cost method in international supplier selection decisions. Transportation Research Procedia 25:853–69. doi:10.1016/j.trpro.2017.05.462.
   Google Scholar
• Qiu, J., Q. Wu, G. Ding, Y. Xu, and S. Feng. 2016. A survey of machine learning for big data processing. EURASIP Journal on Advances in Signal Processing 2016 (1):67. doi:10.1186/s13634-016-0355-x.
   Web of Science ®Google Scholar
• Ray, A. K., M. Jenamani, and P. K. J. Mohapatra. 2011. Supplier behavior modeling and winner determination using parallel MDP. Expert Systems with Applications 38 (5):4689–97. doi:10.1016/j.eswa.2010.08.044.
   Web of Science ®Google Scholar
• Rieck, C., J. Drozak, and G. Von Grawert. 2015. Spieltheorie im Einkauf: Auktionen in Theorie und Praxis [Game theory in procurement: Auctions in theory and practice]. Eschborn: Christian Rieck Verlag.
   Google Scholar
• Ritch, E. L., and C. Brennan. 2010. Using World Café and drama to explore older people’s experience of financial products and services. International Journal of Consumer Studies 34 (4):405–11. doi:10.1111/j.1470-6431.2010.00881.x.
   Web of Science ®Google Scholar
• Roth, A. E. 2002. The economist as engineer: Game theory, experimentation, and computation as tools for design economics. Econometrica 70 (4):1341–78. doi:10.1111/1468-0262.00335.
   Web of Science ®Google Scholar
• Russell, S. J., and P. Norvig. 2010. Artificial intelligence - A modern approach. Upper Saddle River: Prentice Hall.
   Google Scholar
• Samuelson, W. F. 2002. Auctions in Theory and Practice. In K. Chatterjee & W. F. Samuelson (Eds.), Game Theory and Business Applications (pp. 295-338). Berlin-Heidelberg: Springer Verlag.
   Google Scholar
• Scheffler, P., H. Schiele, and P. Horn. 2016. How to measure competition? The role of price dispersion in B2B supply markets. International Journal of Procurement Management 9 (5):568–86. doi:10.1504/IJPM.2016.078692.
   Google Scholar
• Schiele, H. 2007. Supply-management maturity, cost savings and purchasing absorptive capacity: Testing the procurement–performance link. Journal of Purchasing & Supply Management 13 (4):274–93. doi:10.1016/j.pursup.2007.10.002.
   Google Scholar
• Schiele, H.,Horn, P., & Vos, B. 2011. Estimating cost-saving potential from international sourcing and other sourcing levers: Relative importance and trade-offs. International Journal of Physical Distribution & Logistics Management 41 (3):315–36. doi:10.1108/09600031111123813.
   Web of Science ®Google Scholar
• Schulze-Horn, I.,Pulles, N. J., Schiele, H., & Scheffler, P. (2018). Using mechanism design theory in negotiations to improve purchasing performance. International Journal of Procurement Management, 11(6), 777-800.
   Google Scholar
• Selten, R. 1991. Evolution, learning, and economic behavior. Games and Economic Behavior 3 (1):3–24. doi:10.1016/0899-8256(91)90003-W.
   Web of Science ®Google Scholar
• Simon, H. A. 1955. A behavioral model of rational choice. The Quarterly Journal of Economics 69 (1):99–118. doi:10.2307/1884852.
   Web of Science ®Google Scholar
• Simon, H. A. 1956. Rational choice and the structure of the environment. Psychological Review 63 (2):129–38. doi:10.1037/h0042769.
   PubMed Web of Science ®Google Scholar
• Simon, H. A. 1997. Models of bounded rationality: Empirically grounded economic reason, vol. 3. Cambridge, Massachusetts: The MIT press.
   Google Scholar
• Singh, G., and C. M. O’Keefe. 2016. Decentralised scheduling with confidentiality protection. Operations Research Letters 44 (4):514–19. doi:10.1016/j.orl.2016.05.004.
   Web of Science ®Google Scholar
• Tan, S., and J. Brown. 2005. The World Café in Singapore: Creatinga learning culture through dialogue. The Journal of Applied Behavioral Science 41 (1):83–90. doi:10.1177/0021886304272851.
   Google Scholar
• Tennenholtz, M. 2002. Game theory and artificial intelligence. In Foundations and applications of multi-agent systems, ed. M. d’Inverno, M. Luck, M. Fisher, and C. Preist, 49–58. Berlin, Heidelberg: Springer.
   Google Scholar
• Varian, H. R. 2011. Grundzüge der Mikroökonomik [Fundamentals of microeconomics]. München: Oldenbourg Verlag.
   Google Scholar
• Vos, F. G. S., P. Scheffler, H. Schiele, and P. Horn. 2016. Does global sourcing pay-off? A competitive dynamics perspective. Journal of Purchasing and Supply Management 22 (4):338–50. doi:10.1016/j.pursup.2016.07.002.
   Web of Science ®Google Scholar
• Wang, B., Y. Wu, and K. J. R. Liu. 2010. Game theory for cognitive radio networks: An overview. Computer Networks 54 (14):2537–61. doi:10.1016/j.comnet.2010.04.004.
   Web of Science ®Google Scholar
• Wynstra, J. Y. F. 2016. Past, present and future trends of purchasing and supply management: An extensive literature review. In A journey through manufacturing and supply chain strategy research: A tribute to professor Gianluca Spina, ed. E. Bartezzaghi, R. Cagliano, F. Caniato, and S. Ronchi, 199–228. Cham, Switzerland: Springer International Publishing.
   Google Scholar
• Yan Chan, K., K. K. Fung Yuen, V. Palade, and Y. Yue. 2016. Artificial intelligence techniques in product engineering. Engineering Applications of Artificial Intelligence 47:1–2. doi:10.1016/j.engappai.2015.11.003.
   Web of Science ®Google Scholar
• Young, H. P. 1991. Negotiation analysis. Negotiation analysis, ed. H. P. Young. Ann Arbor: The University of Michigan Press.
   Google Scholar