A STUDY OF BEHAVIORS IN PROCUREMENT, SUPPLY CHAIN AND ARTIFICIAL INTELLIGENCE

Abstract

In the first chapter, we investigate the loss aversion behavior in service procurement auction. We study and compare two mechanisms, i.e., the percentage reimbursement policy and flat reimbursement policy to improve buyer's expected utility. In the second chapter, we analyze the trust behavior in a supply chain within a "cheap-talk" communication environment. We find that under the right conditions, an untrustworthy retailer can manipulate a trusting supplier, which reduces the double marginalization problem, and benefits the supply chain. In the last chapter, we study the trust and trustworthiness behaviors of AI agents in the trust Game. This paper finds that "human-like" trust and trustworthiness can emerge in Artificial intelligence from an interactive learning process.