A Computational Algorithm for Multi-Contract Bidding Under Constraints

This paper considers a multi-contract bidding situation in which the contracts are interrelated because of limited productive facilities and because of budgetary constraints. A dynamic programming model and computational algorithm are presented which derive a bidding strategy which maximizes total expected return from all contracts subject to the constraints. The computational algorithm is efficient in terms of storage capacity required and computation time.

• 저널Management Science · 22(7) · 788–798
• 토픽Auction Theory and Applications · Management Science and Operations Research
• DOI10.1287/mnsc.22.7.788
• 저자David A. Goodman, Hans Baurmeister