Knowledge Base Repository
In addition to research papers, the Design Society is developing several valuable resources for those interested in the study of design. These include a repository of PhD theses, a library of case studies and transcripts of design activities, and an archive of our newsletters. Please note that these resources are accessible exclusively to Design Society members.
A Hybrid Negotiation-Auction Mechanism for Design Sourcing
Chen, Songlin; Tseng, Mitchell
Type:
Year:
2009
Editor:
Norell Bergendahl, M.; Grimheden, M.; Leifer, L.; Skogstad, P.; Lindemann, U.
Author:
Series:
ICED
Section:
Design Organization and Management
Page(s):
229-238
Abstract:
The source of innovation is increasingly coming from outside instead of within, which makes it an imperative for companies to effectively source designs. However, design sourcing involves complex and coupled decisions in both engineering and economic domains due to information asymmetry, information stickiness, and conflicting incentives. This paper models design sourcing as a contracting problem with an embedded collaborative design problem. A hybrid negotiation-auction mechanism is proposed to reconcile the conflict between competition and collaboration in information sharing and problem solving. The mechanism proves to be socially efficient and provides necessary flexibility as well as incentives for design innovation.
Keywords:
