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This paper considers decisions of bidders with bounded rationality in different thinking levels for a first-price sealed-bid reverse auction. To characterize the nonequilibrium strategic thinking, we construct a mathematical model that incorporates the "level-k decision rule" to iteratively derive closed-form solutions. Then the effects of bidders' heterogeneous beliefs of thinking levels on their bid prices and expected payoffs are investigated. We find that under some assumptions, bidders will exhibit oscillating behavior in their bid prices and expected profits in terms of thinking levels. When the thinking level tends to infinity, the bid prices and expected profits converge to those in the conventional analysis with perfectly rational bidders. An interesting finding from theoretical analysis verified by numerical experiments is that any bidder with a thinking level above two should bid according to level-2 bidder's strategy to achieve the highest expected profit, and in this case the buyer will pay no more than level-2 bidder's bid price. [ABSTRACT FROM AUTHOR]

Clean energy is an important source to mitigate the pressure of resources shortage and environmental effects. While multiattribute reverse auction is frequently adopted for the procurement efficiency of clean energy devices, the associated winner determination problem is explicitly studied for a utility company/buyer to select the most appropriate supplier in the clean energy market. Considering the buyer's loss-averse behavior with incomplete information and suppliers' conflicting attributes in different types evaluated by multiple experts, we incorporate an I U L O W A f (induced uncertain linguistic ordered weighted averaging) operator and a revised TODIM (an acronym in Portuguese of Interactive and Multi-attribute Decision Making) measure that is consistent with prospect theory into the "benefits, opportunities, costs and risks" (BOCR) framework to develop a novel BOCR-uRTODIM solution method for multi-attribute decision making. Numerical experiments illustrate the effectiveness and robustness of the proposed method by comparing it with some known methods. An interesting result indicates that the risk aversion degree of the buyer increases as the variance of suppliers' attributes expands. The BOCR-uRTODIM could be a useful tool for utility companies to avoid losses and for associated suppliers to improve their attributes for a win in the clean energy industry. • Reverse auction for the clear energy device procurement is studied. • Utility companies' loss-averse behavior and incomplete information are considered. • Prospect theory is integrated into analytic hierarchy process for decision making. • A novel, effective, and robust method is proposed for determining the winner. • Managerial insights are drawn for utility companies in the clean energy industry. [ABSTRACT FROM AUTHOR]

As a supply chain solution integrator, fourth party logistics (4PL) has become an important focus for improving the operational efficiency of the logistics industry in recent days. This paper addresses the mechanism design problem of the 4PL for selecting a third party logistics (3PL) provider who involves loss-averse behavior to form a longer-term strategic partnership in multi-attribute reverse auctions. Due to fluctuating costs of energy or labor and unintentional delivery failures like traffic jam or technology malfunctions, we consider two incomplete attributes, namely cost uncertainty and delivery risk. Integrating the loss-averse behavior of 3PLs, based on the prospect theory, the bid decision model is constructed to obtain 3PLs’ bidding strategies. The corresponding efficient and optimal scoring auctions that consist of cost-sharing contract and contingent penalty are developed to maximize the ex ante expected profit of the system or the 4PL depending on whether the 4PL is willing to cooperate or not. Theoretical analysis verified by numerical examples illustrates the advantage of the proposed mechanisms. Impacts of model parameters on the 4PL’s decision are also investigated and managerial insights are presented. [ABSTRACT FROM AUTHOR]

Suppliers may experience emotional/behavioral consequences of anticipated regrets that consist of winner and loser regrets in first- and second-price sealed-bid reverse auctions. Constructing mathematical models that incorporate regret theory to derive closed-form solutions of regret-anticipated suppliers’ bid decisions, this paper theoretically examines the effects of anticipated regrets on suppliers’ bid prices, buyer’s expected procurement cost and auction format decision. Comparing with the no regret scenario, we find that winner regret has adverse effects on the buyer’s expected procurement cost in first-price sealed-bid reverse auctions with regret-anticipated suppliers. To mitigate the adverse effects, we propose using the reserve price strategy for the buyer with theoretical analysis and numerical supports. An interesting analysis reveals that as the number of suppliers increases, the optimal reserve price increases or decreases depending on the degree of winner regret is lower or higher than that of loser regret. Also, the classical revenue equivalence theorem no longer holds when the degree of winner regret differs from that of loser regret. [ABSTRACT FROM AUTHOR]

This paper investigates a new winner determination problem with sustainable and responsive concerns under disruption risks for transportation service procurement auctions. In such an auction, a fourth party logistics (4PL) provider purchases transportation services from multiple third party logistics (3PL) providers. We develop a two-stage stochastic mixed-integer programming model that incorporates two features, including (i) a sustainable–responsive constraint to quantitatively describe the sustainability and responsiveness performance, and (ii) an effective hybrid mitigation strategy that combines the fortification policy with the temporary outsourcing service policy to mitigate disruptions. To determine winning 3PLs, a reduced scenario-based approximation approach is developed to solve the model and obtain a nearly optimal solution very quickly. Numerical experiments are conducted to illustrate the effectiveness and applicability of our model and method by using randomly generated instances as well as real data of a Chinese 4PL firm. Compared with existing studies, sensitivity analysis indicates that our proposed model can significantly reduce the 4PL's expected cost and improve the long-term competitive advantages. Managerial implications are also drawn for 4PLs to run a sustainable–responsive logistics system under disruptions in a cost-effective way. [ABSTRACT FROM AUTHOR]

Disruption risks and quantity discounts have not been explicitly studied in traditional winner determination problems. This paper investigates an innovative winner determination problem with accidental disruptions and quantity discounts for a fourth party logistics provider in a logistics service procurement auction. An effective hybrid strategy that integrates a fortification policy with an outside option policy is developed to mitigate possible disruptions. Integrating the hybrid strategy with a piecewise-linear discount function, a stochastic nonlinear winner determination model is constructed. Utilizing a linearization technique, such a nonlinear winner determination model can be reformulated as a mixed integer linear program. To obtain nearly optimal solutions, a scenario-based approximation method is developed, including a reduced scenario technique and a dual decomposition Lagrangian relaxation technique. Numerical experiments are conducted to illustrate the effectiveness and applicability of the proposed model and method. When the discount parameter decreases or the disruption probability increases, the fortification policy becomes more important for the logistics system. An interesting result indicates that both the auctioneer and bidders may benefit from considering the discount policy. Managerial implications are drawn for fourth party logistics providers to run a reliable logistics system in a cost-effective way. • A nonlinear winner determination (WD) with disruptions and discounts is studied. • Fortification and outside option policies are integrated to address disruptions. • The nonlinear WD is reformulated as a linear one by a superior expression method. • An effective approximation method is developed to obtain near-optimal solutions. • Managerial implications are drawn for 4PLs and 3PLs in the logistics industry. [ABSTRACT FROM AUTHOR]

Despite promising performance at ambient temperature, the development of aqueous zinc batteries is jeopardized by the freeze of aqueous electrolytes and deteriorative electrode‐electrolyte interphase at low temperatures. Herein, inspired by the cryoprotective mechanism of extracellular polysaccharides in biological organisms, a quaternized galactomannan polysaccharide (q‐GPA) is proposed as a cryoprotective additive for improving low‐temperature performance of aqueous zinc batteries. Mechanistic studies revealed that a multi‐hydroxyl galactomannan backbone can substantially attenuate the activity of water molecules through the reconfiguration of the hydrogen bond network, which inhibits ice crystal formation at subzero temperatures and thus depress the freezing point of the electrolyte. Meanwhile, the quaternary ammonium groups tethered on the q‐GPA skeleton are intended to neutralize the interfacial electric field through electrostatic repulsion, thereby accelerating Zn2+ deposition kinetics and prohibiting zinc dendrite growth. Impressively, the q‐GPA–modified electrolyte enables an extended lifespan of over 1700 h in Zn||Zn symmetric battery at a high current density of 3 mA cm−2 and an ultralong cycle life of 5000 cycles with a capacity retention of 99.2% in the Zn||Na2V6O16·1.5H2O (NVO) full battery at −30 °C. This work provides unprecedented possibilities for optimizing the electrolyte formulation of low‐temperature aqueous batteries. [ABSTRACT FROM AUTHOR]

With the growing level of public environmental consciousness, sustainability has become an important issue in the area of supply chain management. This paper focuses on a channel coordination problem in a two-echelon sustainable supply chain involving one socially responsible manufacturer and one fair-minded retailer. Constructing mathematical models to characterize the problem, four particular contracts are developed to investigate the environmental performance and channel profit under the framework of two non-cooperative contracts: wholesale price and two-part tariff, and two cooperative contracts: Nash bargaining and Rubinstein bargaining. Theoretical analysis verified by numerical experiments shows that the wholesale price contract performs worse than the other three in terms of the carbon emission per unit product and channel profit. In addition, the two-part tariff contract can partially coordinate the supply chain, whereas both bargaining contracts can achieve perfect coordination to provide outcomes of the centralized decision. Comparing with the fair-neutral scenarios, we find that the fairness behavior promotes the retailer's profit, but reduces the manufacturer's profit under different contracts. Sensitivity analysis reveals that with intensified fairness concerns, the sustainability level and channel profit diminish under non-cooperative contracts, but remain the same under cooperative contracts. The Nash bargaining and Rubinstein bargaining contracts are robust to the degree of the retailer's fairness behavior and could be the best choice for the socially responsible manufacturer. • A channel coordination issue in a two-echelon sustainable supply chain is studied. • Four contracts are developed to examine the impact of retailer's fairness behavior. • Fairness behavior worsens wholesale price contract compared to two-part tariff one. • Nash and Rubinstein bargaining contracts are robust to levels of fairness concerns. • Both bargaining contracts achieve perfect coordination in reducing carbon emission. [ABSTRACT FROM AUTHOR]

Purpose: To investigate whether the Institute of Medicine (IOM) recommended gestational weight gain (GWG) range is optimal among Chinese singleton pregnant women.Methods: For the purpose of a retrospective observational study, data on 8209 mature singleton deliveries in Shanghai from January 2014 to December 2016 were extracted from medical records in terms of clinical performance. All cases were categorized as undergainers, appropriate-gainers, and above-gainers according to IOM recommended gestational weight gain range after stratification of maternal BMI and proportions of three categories were calculated. Comparisons of maternal and neonatal outcome were conducted among three categories and the associations of those outcome including risks of low birth weight (LBW) and macrosomia (MAC) with GWG were estimated by logistic regression analysis. To examine the applicability of IOM recommendation for Chinese pregnant women, the accumulated risk of LBW and MAC was displayed by stacked column chart and comparison was made among GWG category. The joint predicted risk (JPR) curve of both LBW and MAC in relation to GWG (continuous measurement) was plotted to demonstrate the relation of lowest JPR corresponding GWG with IOM range.Results: The IOM recommended weight gain was achieved only by 3502 (42.7%) pregnant women and 41.6% gained excessive weight during pregnancy, especially for the overweight and obese women, the proportions of above-gainers mounting to 65.7 and 75.9%, respectively. By multivariate analysis GWG significantly influenced the risk of MAC and caesarean section. Although the association between the risk of LBW and GWG was not significant, p value reached .051. The risk of delivering macrosomia and caesarean section doubled when GWG exceeded the IOM rang. Appropriate gainers did not always gain the lowest joint risk of low birth weight and macrosomia from stacked column chart and it is obvious that the GWG point according to the lowest JPR was always located left to the IOM recommended range for each BMI category from the JPR curve chart in relation to GWG.Conclusions: The IOM recommended GWG range is possibly too much for Chinese singleton pregnant population for each BMI category. It is necessary to build different gestational weight gain standards for specific ethnic population. [ABSTRACT FROM AUTHOR]