Optimization in electronic markets: examples in combinatorial auctions

Combinatorial auctions provide an important tool for mechanism design in multi-agent systems. When implemented they require to solve combinatorial optimization problems such as set packing and partitioning problems. We present in this paper an analysis of the complexity of the problem to assign bids to bidders in combinatorial auctions. We show that the case of identical assets can be solved in polynomial time. The case of non-identical assets is in its general version NP-hard. Extra structure, like a complete ordering of assets, or mild side conditions make the problem solvable. Finally, we present an algorithm to solve small and medium sized instances in a limited time using standard software.     

Return on marketing investments in B2B customer relationships: A decision-making and optimization approach

The basic notion of relationship marketing entails that firms should strive for mutually beneficial customer relationships. By combining relationship marketing theory and operations research methods, this paper aims to develop and demonstrate a managerial decision-making model that business market managers can use to optimize and evaluate marketing investments in both a customer-oriented and economically feasible manner. The intended contributions of our work are as follows. First, we add to the return on marketing literature by providing a first decision-making approach that explicitly assesses the optimization of marketing investments in terms of profitability, effort, and resource allocation. Second, we show how the risk of marketing investments can be assessed using sensitivity analysis. By means of an empirical study the versatility of our decision-making approach is demonstrated by assessing various critical decision making issues for business marketing managers in detail.     

The emergence of Korean and Taiwanese multinationals in Europe: prospects and limitations

Although the outward orientation of the Korean and Taiwanese economies in the past was confined to their export activities, during the last decade and a half they have emerged as important home countries of overseas investment. In this contribution, special attention is paid to their investment activities in Europe, about which very little is known. After a short theoretical discussion of their ‘deviant’ (‘late’) industrialization patterns, the investments of two Korean (consumer electronics) and two Taiwanese (computer) companies in Europe are examined in detail. Special attention is paid to their actual operations in the region, the motivations to invest and the problems faced in building up a strong position in this part of the industrialized world. It will be shown that the late industrialization nature of the Korean and Taiwanese economies has considerably influenced their internationalization patterns.