Solving the winner determination problem via a weighted maximum clique heuristic

Combinatorial auctions (CAs) where bidders can bid on combinations of items is an important model in many application areas. CAs attract more and more attention in recent years due to its relevance to fast growing electronic business applications. In this paper, we study the winner determination problem (WDP) in CAs which is known to be NP-hard and thus computationally difficult in the general case. We develop a solution approach for the WDP by recasting the WDP into the maximum weight clique problem (MWCP) and solving the transformed problem with a recent heuristic dedicated to the MWCP. The computational experiments on a large range of 530 benchmark instances show that the clique-based approach for the WDP not only outperforms the current best performing WDP heuristics in the literature both in terms of solution quality and computation efficiency, but also competes very favorably with the powerful CPLEX solver

On Maximum Weight Clique Algorithms, and How They Are Evaluated

Maximum weight clique and maximum weight independent set solvers are often benchmarked using maximum clique problem instances, with weights allocated to vertices by taking the vertex number mod 200 plus 1. For constraint programming approaches, this rule has clear implications, favouring weight-based rather than degree-based heuristics. We show that similar implications hold for dedicated algorithms, and that additionally, weight distributions affect whether certain inference rules are cost-effective. We look at other families of benchmark instances for the maximum weight clique problem, coming from winner determination problems, graph colouring, and error-correcting codes, and introduce two new families of instances, based upon kidney exchange and the Research Excellence Framework. In each case the weights carry much more interesting structure, and do not in any way resemble the 200 rule. We make these instances available in the hopes of improving the quality of future experiments

Finding Near-Optimal Weight Independent Sets at Scale

Computing maximum weight independent sets in graphs is an important NP-hard optimization problem. The problem is particularly difficult to solve in large graphs for which data reduction techniques do not work well. To be more precise, state-of-the-art branch-and-reduce algorithms can solve many large-scale graphs if reductions are applicable. Otherwise, their performance quickly degrades due to branching requiring exponential time. In this paper, we develop an advanced memetic algorithm to tackle the problem, which incorporates recent data reduction techniques to compute near-optimal weighted independent sets in huge sparse networks. More precisely, we use a memetic approach to recursively choose vertices that are likely to be in a large-weight independent set. We include these vertices into the solution, and further reduce the graph. We show that identifying and removing vertices likely to be in large-weight independent sets opens up the reduction space and speeds up the computation of large-weight independent sets remarkably. Our experimental evaluation indicates that we are able to outperform state-of-the-art algorithms. For example, our two algorithm configurations compute the best results among all competing algorithms for 205 out of 207 instances. Thus can be seen as a useful tool when large-weight independent sets need to be computed in~practice

Numerical Algorithms for Polynomial Optimisation Problems with Applications

In this thesis, we study tensor eigenvalue problems and polynomial optimization problems. In particular, we present a fast algorithm for computing the spectral radii of symmetric nonnegative tensors without requiring the partition of the tensors. We also propose some polynomial time approximation algorithms with new approximation bounds for nonnegative polynomial optimization problems over unit spheres. Furthermore, we develop an efficient and effective algorithm for the maximum clique problem

Winner Determination in Combinatorial Auctions using Hybrid Ant Colony Optimization and Multi-Neighborhood Local Search

A combinatorial auction is an auction where the bidders have the choice to bid on bundles of items. The WDP in combinatorial auctions is the problem of finding winning bids that maximize the auctioneer’s revenue under the constraint that each item can be allocated to at most one bidder. The WDP is known as an NP-hard problem with practical applications like electronic commerce, production management, games theory, and resources allocation in multi-agent systems. This has motivated the quest for efficient approximate algorithms both in terms of solution quality and computational time. This paper proposes a hybrid Ant Colony Optimization with a novel Multi-Neighborhood Local Search (ACO-MNLS) algorithm for solving Winner Determination Problem (WDP) in combinatorial auctions. Our proposed MNLS algorithm uses the fact that using various neighborhoods in local search can generate different local optima for WDP and that the global optima of WDP is a local optima for a given its neighborhood. Therefore, proposed MNLS algorithm simultaneously explores a set of three different neighborhoods to get different local optima and to escape from local optima. The comparisons between ACO-MNLS, Genetic Algorithm (GA), Memetic Algorithm (MA), Stochastic Local Search (SLS), and Tabu Search (TS) on various benchmark problems confirm the efficiency of ACO-MNLS in the terms of solution quality and computational time