Iterative procurement combinatorial auction based on price-quality bidding

We design an iterative procurement combinatorial auction (CA) rules based on price-quality bidding pattern, then construct the conception ldquocompetitive equilibrium scorerdquo (CES) to formulate optimization problem for the quality-related CA mechanism. By applying CES and a linear program plus its dual, we model the objective function as allocation efficiency and constraints according to the auction rules. The model implements a primal-dual algorithm for the auction, computing a feasible primal and a feasible dual that satisfy complementary slackness conditions when auction terminates, meanwhile allocation efficiency is achieved in the iterative procurement CA.