An agent based market design methodology for combinatorial auctions

Jinho Choi, Gyoo Gun Lim, Kun Chang Lee

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Auction mechanisms have attracted a great deal of interest and have been used in diverse e-marketplaces. In particular, combinatorial auctions have the potential to play an important role in electronic transactions. Therefore, diverse combinatorial auction market types have been proposed to satisfy market needs. These combinatorial auction types have diverse market characteristics, which require an effective market design approach. This study proposes a comprehensive and systematic market design methodology for combinatorial auctions based on three phases: market architecture design, auction rule design, and winner determination design. A market architecture design is for designing market architecture types by Backward Chain Reasoning. Auction rules design is to design transaction rules for auctions. The specific auction process type is identified by the Backward Chain Reasoning process. Winner determination design is about determining the decision model for selecting optimal bids and auctioneers. Optimization models are identified by Forward Chain Reasoning. Also, we propose an agent based combinatorial auction market design system using Backward and Forward Chain Reasoning. Then we illustrate a design process for the general n-bilateral combinatorial auction market. This study serves as a guideline for practical implementation of combinatorial auction markets design.

Original languageEnglish
JournalJASSS
Volume13
Issue number2
DOIs
StatePublished - 2010 Jan 1

Fingerprint

auction
methodology
market
transaction
decision model
optimization model
electronics

Keywords

  • Agent-based system
  • Auction rule design
  • Combinatorial auction
  • Market architecture design
  • Market design methodology
  • Winner determination design

Cite this

Choi, Jinho ; Lim, Gyoo Gun ; Lee, Kun Chang. / An agent based market design methodology for combinatorial auctions. In: JASSS. 2010 ; Vol. 13, No. 2.
@article{f395c11716664ec8a87e5f6e7b5fec36,
title = "An agent based market design methodology for combinatorial auctions",
abstract = "Auction mechanisms have attracted a great deal of interest and have been used in diverse e-marketplaces. In particular, combinatorial auctions have the potential to play an important role in electronic transactions. Therefore, diverse combinatorial auction market types have been proposed to satisfy market needs. These combinatorial auction types have diverse market characteristics, which require an effective market design approach. This study proposes a comprehensive and systematic market design methodology for combinatorial auctions based on three phases: market architecture design, auction rule design, and winner determination design. A market architecture design is for designing market architecture types by Backward Chain Reasoning. Auction rules design is to design transaction rules for auctions. The specific auction process type is identified by the Backward Chain Reasoning process. Winner determination design is about determining the decision model for selecting optimal bids and auctioneers. Optimization models are identified by Forward Chain Reasoning. Also, we propose an agent based combinatorial auction market design system using Backward and Forward Chain Reasoning. Then we illustrate a design process for the general n-bilateral combinatorial auction market. This study serves as a guideline for practical implementation of combinatorial auction markets design.",
keywords = "Agent-based system, Auction rule design, Combinatorial auction, Market architecture design, Market design methodology, Winner determination design",
author = "Jinho Choi and Lim, {Gyoo Gun} and Lee, {Kun Chang}",
year = "2010",
month = "1",
day = "1",
doi = "10.18564/jasss.1557",
language = "English",
volume = "13",
journal = "JASSS",
issn = "1460-7425",
number = "2",

}

An agent based market design methodology for combinatorial auctions. / Choi, Jinho; Lim, Gyoo Gun; Lee, Kun Chang.

In: JASSS, Vol. 13, No. 2, 01.01.2010.

Research output: Contribution to journalArticle

TY - JOUR

T1 - An agent based market design methodology for combinatorial auctions

AU - Choi, Jinho

AU - Lim, Gyoo Gun

AU - Lee, Kun Chang

PY - 2010/1/1

Y1 - 2010/1/1

N2 - Auction mechanisms have attracted a great deal of interest and have been used in diverse e-marketplaces. In particular, combinatorial auctions have the potential to play an important role in electronic transactions. Therefore, diverse combinatorial auction market types have been proposed to satisfy market needs. These combinatorial auction types have diverse market characteristics, which require an effective market design approach. This study proposes a comprehensive and systematic market design methodology for combinatorial auctions based on three phases: market architecture design, auction rule design, and winner determination design. A market architecture design is for designing market architecture types by Backward Chain Reasoning. Auction rules design is to design transaction rules for auctions. The specific auction process type is identified by the Backward Chain Reasoning process. Winner determination design is about determining the decision model for selecting optimal bids and auctioneers. Optimization models are identified by Forward Chain Reasoning. Also, we propose an agent based combinatorial auction market design system using Backward and Forward Chain Reasoning. Then we illustrate a design process for the general n-bilateral combinatorial auction market. This study serves as a guideline for practical implementation of combinatorial auction markets design.

AB - Auction mechanisms have attracted a great deal of interest and have been used in diverse e-marketplaces. In particular, combinatorial auctions have the potential to play an important role in electronic transactions. Therefore, diverse combinatorial auction market types have been proposed to satisfy market needs. These combinatorial auction types have diverse market characteristics, which require an effective market design approach. This study proposes a comprehensive and systematic market design methodology for combinatorial auctions based on three phases: market architecture design, auction rule design, and winner determination design. A market architecture design is for designing market architecture types by Backward Chain Reasoning. Auction rules design is to design transaction rules for auctions. The specific auction process type is identified by the Backward Chain Reasoning process. Winner determination design is about determining the decision model for selecting optimal bids and auctioneers. Optimization models are identified by Forward Chain Reasoning. Also, we propose an agent based combinatorial auction market design system using Backward and Forward Chain Reasoning. Then we illustrate a design process for the general n-bilateral combinatorial auction market. This study serves as a guideline for practical implementation of combinatorial auction markets design.

KW - Agent-based system

KW - Auction rule design

KW - Combinatorial auction

KW - Market architecture design

KW - Market design methodology

KW - Winner determination design

UR - http://www.scopus.com/inward/record.url?scp=77950349256&partnerID=8YFLogxK

U2 - 10.18564/jasss.1557

DO - 10.18564/jasss.1557

M3 - Article

AN - SCOPUS:77950349256

VL - 13

JO - JASSS

JF - JASSS

SN - 1460-7425

IS - 2

ER -