We cast the problem of combinatorial auction design in a Bayesian framework in order to incorporate prior information into the auction process and minimize the number of rounds to convergence. We first develop a generative model of agent valuations and market prices such that clearing prices become maximum a posteriori estimates given observed agent valuations. This generative model then forms ...

A combinatorial auction is an auction where multiple items are for sale simultaneously to a set of buyers. Furthermore, buyers are allowed to place bids on subsets of the available items. This paper focusses on a combinatorial auction where a bidder can express his preferences by means of a so-called ordered matrix bid. This matrix bid auction was developed by Day (2004) and allows bids on all ...

Transportation or logistics exchanges help shippers and carriers to save costs and increase their revenue at the same time. Auction based models are increasingly becoming popular as the negotiation model in such exchanges. In this paper, we propose an iterative auction model for efficiently solving the allocation problem in combinatorial logistics exchanges which allow combinatorial bidding by ...

Combinatorial auctions – in which bidders can bid on combinations of goods – can increase the economic efficiency of a trade when goods have complementarities. Recent theoretical developments have lessened the computational complexity of these auctions, but the issue of cognitive complexity remains an unexplored barrier for the online marketplace. This study uses a data-driven approach to explo...

HARISH G KAMMANAHALLI. Effects of Approximation on an Iterative Combinatorial Auction. (Under the direction of Dr Ṗeter Wurman.) Combinatorial auctions are a promising way of solving the complicated heterogeneous resource allocation problem. However combinatorial auctions present inherently hard computational problems for agents and auctioneers. In particular (1) the auction must solve the winn...

We consider important design issues of the reverse auction, a key and innovative part of the broadcast television incentive auction. In the reverse auction, broadcasters compete to repurpose television broadcast spectrum for mobile broadband use. The Comment Public Notice (FCC 14 191) outlined the basic structure of the reverse auction. We take that basic structure as given and then examine cri...

First-come-first-serve (FCFS) scheme is used for selling the goods in market that is a multi-million dollar industry for any popular event. But in a competitive environment is this FCFS efficient? In earlier literature it has been shown that the auction based alternative solutions using the framework of mechanism design, a sub field of game theory [18] can provide better results against FCFS in...

Combinatorial auctions have been studied analytically for several years, but only limited experimental results are available, in particular for auctions with more than 10 items. We investigate the Hierarchical Package Bidding auction (HPB), the Combinatorial Clock auction (CC), and one pseudo-dual price auction (PDP) experimentally, as all these formats were used or suggested for high-stakes sp...

We use theory and experiment to explore the performance of multi-stage, price-guided, combinatorial auctions. Dynamics in combinatorial auctions can help bidders to identify relevant packages and encourage losing bidders to bid to their limits. Our experiment compares a dynamic combinatorial mechanism to a simultaneous ascending auction. Unlike earlier experiments, we report not only comparativ...