Bid expressiveness and clearing algorithms in multiattribute double auctions

We investigate the space of two-sided multiattribute auctions, focusing on the relationship between constraints on the offers traders can express through bids, and the resulting computational problem of determining an optimal set of trades. We develop a formal semantic framework for characterizing expressible offers, and show conditions under which the allocation problem can be separated into first identifying optimal pairwise trades and subsequently optimizing combinations of those trades. We analyze the bilateral matching problem while taking into consideration relevant results from multiattribute utility theory. Network flow models we develop for computing global allocations facilitate classification of the problem space by computational complexity, and provide guidance for developing solution algorithms. Experimental trials help distinguish tractable problem classes for proposed solution techniques.

[1]  Martin Bichler,et al.  Configurable offers and winner determination in multi-attribute auctions , 2005, Eur. J. Oper. Res..

[2]  Michael P. Wellman,et al.  A Parametrization of the Auction Design Space , 2001, Games Econ. Behav..

[3]  Ralph L. Keeney,et al.  Decisions with multiple objectives: preferences and value tradeoffs , 1976 .

[4]  Michael P. Wellman,et al.  Market-Based Allocation with Indivisible Bids , 2005, AMEC@AAMAS/TADA@IJCAI.

[5]  Eugene Fink,et al.  Exchange Market for Complex Goods: Theory and Experiments , 2004 .

[6]  Fahiem Bacchus,et al.  Graphical models for preference and utility , 1995, UAI.

[7]  Subhash Suri,et al.  Side constraints and non-price attributes in markets , 2006, Games Econ. Behav..

[8]  Yeon-Koo Che Design competition through multidimensional auctions , 1993 .

[9]  Martin Bichler The Future of e-Markets , 2001 .

[10]  Ho Soo Lee,et al.  Computational Aspects of Clearing Continuous Call Double Auctions with Assignment Constraints and Indivisible Demand , 2001, Electron. Commer. Res..

[11]  David C. Parkes,et al.  Preference elicitation in proxied multiattribute auctions , 2003, EC '03.

[12]  Jianli Gong,et al.  EXCHANGES FOR COMPLEX COMMODITIES: SEARCH FOR OPTIMAL MATCHES , 2002 .

[13]  Noam Nisan,et al.  Bidding and allocation in combinatorial auctions , 2000, EC '00.

[14]  Patrice Perny,et al.  GAI Networks for Decision Making under Certainty , 2005, IJCAI 2005.

[15]  F. Branco The Design of Multidimensional Auctions , 1997 .

[16]  A. Segev,et al.  Multi-attribute Auctions for Electronic Procurement , 1999 .

[17]  M. Fisher,et al.  A multiplier adjustment method for the generalized assignment problem , 1986 .

[18]  R. L. Keeney,et al.  Decisions with Multiple Objectives: Preferences and Value Trade-Offs , 1977, IEEE Transactions on Systems, Man, and Cybernetics.

[19]  N. Economides,et al.  Electronic Call Market Trading , 1995 .

[20]  David C. Parkes,et al.  Models for Iterative Multiattribute Procurement Auctions , 2005, Manag. Sci..

[21]  G. Debreu Topological Methods in Cardinal Utility Theory , 1959 .

[22]  Craig Boutilier,et al.  Eliciting Bid Taker Non-price Preferences in (Combinatorial) Auctions , 2004, AAAI.