576 research outputs found
An Overview of Combinatorial Auctions
An auction is combinatorial when bidders can place bids on combinations of items, called “packages,” rather than just individual items. Computer scientists are interested in combinatorial auctions because they are concerned with the expressiveness of bidding languages, as well as the algorithmic aspects of the underlying combinatorial problem. The combinatorial problem has attracted attention from operations researchers, especially those working in combinatorial optimization and mathematical programming, who are fascinated by the idea of applying these tools to auctions. Auctions have been studied extensively by economists, of course. Thus, the newly emerging field of combinatorial auctions lies at the intersection of computer science, operations research, and economics. In this article, we present a brief introduction to combinatorial auctions, based on our book, Combinatorial Auctions (MIT Press, 2006), in which we look at combinatorial auctions from all three perspectives.Auctions
An Agent Based Market Design Methodology for Combinatorial Auctions
Auction mechanisms have attracted a great deal of interest and have been used in diverse e-marketplaces. In particular, combinatorial auctions have the potential to play an important role in electronic transactions. Therefore, diverse combinatorial auction market types have been proposed to satisfy market needs. These combinatorial auction types have diverse market characteristics, which require an effective market design approach. This study proposes a comprehensive and systematic market design methodology for combinatorial auctions based on three phases: market architecture design, auction rule design, and winner determination design. A market architecture design is for designing market architecture types by Backward Chain Reasoning. Auction rules design is to design transaction rules for auctions. The specific auction process type is identified by the Backward Chain Reasoning process. Winner determination design is about determining the decision model for selecting optimal bids and auctioneers. Optimization models are identified by Forward Chain Reasoning. Also, we propose an agent based combinatorial auction market design system using Backward and Forward Chain Reasoning. Then we illustrate a design process for the general n-bilateral combinatorial auction market. This study serves as a guideline for practical implementation of combinatorial auction markets design.Combinatorial Auction, Market Design Methodology, Market Architecture Design, Auction Rule Design, Winner Determination Design, Agent-Based System
Efficiency Resource Allocation for Device-to-Device Underlay Communication Systems: A Reverse Iterative Combinatorial Auction Based Approach
Peer-to-peer communication has been recently considered as a popular issue
for local area services. An innovative resource allocation scheme is proposed
to improve the performance of mobile peer-to-peer, i.e., device-to-device
(D2D), communications as an underlay in the downlink (DL) cellular networks. To
optimize the system sum rate over the resource sharing of both D2D and cellular
modes, we introduce a reverse iterative combinatorial auction as the allocation
mechanism. In the auction, all the spectrum resources are considered as a set
of resource units, which as bidders compete to obtain business while the
packages of the D2D pairs are auctioned off as goods in each auction round. We
first formulate the valuation of each resource unit, as a basis of the proposed
auction. And then a detailed non-monotonic descending price auction algorithm
is explained depending on the utility function that accounts for the channel
gain from D2D and the costs for the system. Further, we prove that the proposed
auction-based scheme is cheat-proof, and converges in a finite number of
iteration rounds. We explain non-monotonicity in the price update process and
show lower complexity compared to a traditional combinatorial allocation. The
simulation results demonstrate that the algorithm efficiently leads to a good
performance on the system sum rate.Comment: 26 pages, 6 fgures; IEEE Journals on Selected Areas in
Communications, 201
Simplified Bid Languages – A Remedy to Efficiency Losses in Large Spectrum Auctions
Combinatorial auctions have been suggested as a mean to raise efficiency in multi-item negotiations with complementarities among goods as they can be found in procurement, energy markets, transportation, and the sale of spectrum auctions. Since 2008 the Combinatorial Clock Auction (CCA), a two-stage auction format has been used in many countries. [8] tested CCA in the lab and found out that the efficiency of CCA was relatively low, since bidders tended to submit too few bids. To reduce bidders’ complexity concerning evaluating lots of bundles, we simplified the bidding language without losing efficiency. Hereby, we used the knowledge of super-additivity and the fixed descending complementarity type of our value model. In lab experiments, we tested the two phases of the CCA auction, namely the Combinatorial Clock + (CC+) auction and a sealed bid version, with the simplification separately. Both formats yielded in higher efficiency and revenue than the CCA
Environmental analysis for application layer networks
Die zunehmende Vernetzung von Rechnern über das Internet lies die Vision von Application Layer Netzwerken aufkommen. Sie umfassen Overlay Netzwerke wie beispielsweise Peer-to-Peer Netzwerke und Grid Infrastrukturen unter Verwendung des TCP/IP Protokolls. Ihre gemeinsame Eigenschaft ist die redundante, verteilte Bereitstellung und der Zugang zu Daten-, Rechen- und Anwendungsdiensten, während sie die Heterogenität der Infrastruktur vor dem Nutzer verbergen. In dieser Arbeit werden die Anforderungen, die diese Netzwerke an ökonomische Allokationsmechanismen stellen, untersucht. Die Analyse erfolgt anhand eines Marktanalyseprozesses für einen zentralen Auktionsmechanismus und einen katallaktischen Markt. --Grid Computing
Quadratic Core-Selecting Payment Rules for Combinatorial Auctions
We report on the use of a quadratic programming technique in recent and upcoming spectrum auctions in Europe. Specifically, we compute a unique point in the core that minimizes the sum of squared deviations from a reference point, for example, from the Vickrey-Clarke-Groves payments. Analyzing the Karush-Kuhn-Tucker conditions, we demonstrate that the resulting payments can be decomposed into a series of economically meaningful and equitable penalties. Furthermore, we discuss the benefits of this combinatorial auction, explore the use of alternative reserve pricing approaches in this context, and indicate the results of several hundred computational runs using CATS data.Auctions, spectrum auctions, market design, package auction, clock auction, combinatorial auction
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