We consider the problem faced by a procurement agency that runs a mechanism for constructing an assortment of differentiated products with posted prices, from which heterogeneous consumers buy their most preferred alternative. Procurement mechanisms used by large organizations, including...

Framework agreements (FAs) are procurement mechanisms used in private and public organizations by which a central procurement agency selects an assortment of products, typically through auctions, and then affiliated organizations can purchase from the selected assortment as needs arise. In...

Problem definition: We consider the mechanism design problem of finding an optimal pay-as-bid mechanism in which the platform chooses an assortment of suppliers that balances the tradeoff between two objectives: providing enough variety to accommodate heterogeneous buyers, yet at low prices....