Ibundle: an Eecient Ascending Price Bundle Auction

Standard auction mechanisms often break down in important e-commerce applications, where agents demand bundles of complementary resources, i.e. \I only want B if I also get A". This paper describes iBundle, an ascending-price auction that is guaranteed to compute optimal bundle allocations with agents that follow a best-response bidding strategy. The auction prices bundles directly and allows agents to place additive or exclusive-or bids over collections of bundles. Empirical results connrm that iBundle generates ee-cient allocations for hard resource allocation problems. Furthermore , we show that iBundle generates solutions without complete revelation (or computation) of agent preferences.