Study on the Effect of Information Disclosure Policy in Multi-attribute Reverse Auctions

A Web-based small online auction website is developed to collect the experimental data about the bids of suppliers. The effect of two different information disclosure policies on suppliers´ bids and buyer´s utility is analysized. The conclusions are given as follows: Generally, complete information policy can lead to more intense competition, lower transaction price and higher buyer´s utility. If the winner owns absolute advantage in quality attributes in the first round, it´s better for the buyer to adopt the incomplete information policy. The suppliers with lowest quality attributes will exit the auction and the suppliers with moderate quality attributes will cut more price than those with best quality attribute.