Mechanism Design for Double Auctions with Temporal Constraints
Abstract
This paper examines an extended double auction model where market clearing is restricted by temporal constraints. It is found that the allocation problem in this model can be effectively transformed into a weighted bipartite matching in graph theory. By using the augmentation technique, we propose a Vickrey-Clarke-Groves (VCG) mechanism in this model and demonstrate the advantages of the payment compared with the classical VCG payment (the Clarke pivot payment). We also show that the algorithms for both allocation and payment calculation run in polynomial time. It is expected that the method and results provided in this paper can be applied to the design and analysis of dynamic double auctions and futures markets.
Cite
Text
Zhao et al. "Mechanism Design for Double Auctions with Temporal Constraints." International Joint Conference on Artificial Intelligence, 2011. doi:10.5591/978-1-57735-516-8/IJCAI11-086Markdown
[Zhao et al. "Mechanism Design for Double Auctions with Temporal Constraints." International Joint Conference on Artificial Intelligence, 2011.](https://mlanthology.org/ijcai/2011/zhao2011ijcai-mechanism-a/) doi:10.5591/978-1-57735-516-8/IJCAI11-086BibTeX
@inproceedings{zhao2011ijcai-mechanism-a,
title = {{Mechanism Design for Double Auctions with Temporal Constraints}},
author = {Zhao, Dengji and Zhang, Dongmo and Perrussel, Laurent},
booktitle = {International Joint Conference on Artificial Intelligence},
year = {2011},
pages = {472-477},
doi = {10.5591/978-1-57735-516-8/IJCAI11-086},
url = {https://mlanthology.org/ijcai/2011/zhao2011ijcai-mechanism-a/}
}