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Choice of item pricing feedback schemes for multiple unit reverse combinatorial auctions

Citation

Iftekhar, MS and Hailu, A and Lindner, RK, Choice of item pricing feedback schemes for multiple unit reverse combinatorial auctions, Journal of the Operational Research Society, 64 pp. 1571-1582. ISSN 0160-5682 (2013) [Refereed Article]

Copyright Statement

Copyright 2012 Operational Research Society Ltd

DOI: doi:10.1057/jors.2012.121

Abstract

Recently, interest in combinatorial auctions has extended to include trade in multiple units of heterogeneous items. Combinatorial bidding is complex and iterative auctions are used to allow bidders to sequentially express their preferences with the aid of auction market information provided in the form of price feedbacks. There are different competing designs for the provision of item price feedbacks; however, most of these have not been thoroughly studied for multiple unit combinatorial auctions. This paper focuses on addressing this gap by evaluating several feedback schemes or algorithms in the context of multiple unit auctions. We numerically evaluate these algorithms under different scenarios that vary in bidder package selection strategies and in the degree of competition. We observe that auction outcomes are best when bidders use a naż®ve bidding strategy and competition is strong. Performance deteriorates significantly when bidders strategically select packages to maximize their profit. Finally, the performances of some algorithms are more sensitive to strategic bidding than others.

Item Details

Item Type:Refereed Article
Keywords:agent-based model, item pricing feedback, iterative combinatorial auction, package selection strategy, degree of competition
Research Division:Economics
Research Group:Applied Economics
Research Field:Experimental Economics
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Microeconomics not elsewhere classified
Author:Iftekhar, MS (Mr Sayed Iftekhar)
ID Code:83758
Year Published:2013 (online first 2012)
Web of Science® Times Cited:2
Deposited By:Economics and Finance
Deposited On:2013-03-21
Last Modified:2017-01-18
Downloads:0

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