Designing real-time feedback for bidders in homogeneous-item continuous combinatorial auctions

Research output: Contribution to journalArticle

Abstract

Although combinatorial auctions are important mechanisms for many specialized applications, their adoption in general-purpose marketplaces is still fairly limited, partly due to the inherent difficulty in evaluating the efficacy of bids without the availability of comprehensive bidder support. In this paper, we present both theoretical results and computational designs to support real-time feedback to bidders in continuous combinatorial auctions, where bidders are free to join and leave the auction at any time. In particular, we focus on the broad class of single-item multi-unit (SIMU) combinatorial auctions, where multiple identical units of one homogenous item are being auctioned. We also consider two common ways to express bidding preferences: OR bids and XOR bids. For SIMU auctions with each of the two bid types, we present comprehensive analyses of auction dynamics, which can determine winning bids that satisfy allocative fairness, and compute critical evaluative metrics needed to provide bidder support, including bid winning and deadness levels. We also design the data structures and algorithms needed to provide bidder support in real time for SIMU auctions of practically relevant sizes. The computational tools proposed in this paper can facilitate the efficient and more transparent implementation of SIMU combinatorial auctions in business- and consumer-oriented markets.

Original languageEnglish (US)
Pages (from-to)721-743
Number of pages23
JournalMIS Quarterly: Management Information Systems
Volume43
Issue number3
DOIs
StatePublished - Jan 1 2019

Fingerprint

Feedback
Data structures
Availability
Industry
Combinatorial auctions
Bid
Multi-unit auctions
Auctions

Keywords

  • Allocative fairness
  • Computational artifact design
  • Continuous combinatorial auctions
  • Electronic markets
  • Multi-unit auctions
  • Real-time bidder support

Cite this

@article{cb5fc48b7f5e459883086d066d49250a,
title = "Designing real-time feedback for bidders in homogeneous-item continuous combinatorial auctions",
abstract = "Although combinatorial auctions are important mechanisms for many specialized applications, their adoption in general-purpose marketplaces is still fairly limited, partly due to the inherent difficulty in evaluating the efficacy of bids without the availability of comprehensive bidder support. In this paper, we present both theoretical results and computational designs to support real-time feedback to bidders in continuous combinatorial auctions, where bidders are free to join and leave the auction at any time. In particular, we focus on the broad class of single-item multi-unit (SIMU) combinatorial auctions, where multiple identical units of one homogenous item are being auctioned. We also consider two common ways to express bidding preferences: OR bids and XOR bids. For SIMU auctions with each of the two bid types, we present comprehensive analyses of auction dynamics, which can determine winning bids that satisfy allocative fairness, and compute critical evaluative metrics needed to provide bidder support, including bid winning and deadness levels. We also design the data structures and algorithms needed to provide bidder support in real time for SIMU auctions of practically relevant sizes. The computational tools proposed in this paper can facilitate the efficient and more transparent implementation of SIMU combinatorial auctions in business- and consumer-oriented markets.",
keywords = "Allocative fairness, Computational artifact design, Continuous combinatorial auctions, Electronic markets, Multi-unit auctions, Real-time bidder support",
author = "Gediminas Adomavicius and Alok Gupta and Mochen Yang",
year = "2019",
month = "1",
day = "1",
doi = "10.25300/MISQ/2019/14974",
language = "English (US)",
volume = "43",
pages = "721--743",
journal = "MIS Quarterly: Management Information Systems",
issn = "0276-7783",
publisher = "Management Information Systems Research Center",
number = "3",

}

TY - JOUR

T1 - Designing real-time feedback for bidders in homogeneous-item continuous combinatorial auctions

AU - Adomavicius, Gediminas

AU - Gupta, Alok

AU - Yang, Mochen

PY - 2019/1/1

Y1 - 2019/1/1

N2 - Although combinatorial auctions are important mechanisms for many specialized applications, their adoption in general-purpose marketplaces is still fairly limited, partly due to the inherent difficulty in evaluating the efficacy of bids without the availability of comprehensive bidder support. In this paper, we present both theoretical results and computational designs to support real-time feedback to bidders in continuous combinatorial auctions, where bidders are free to join and leave the auction at any time. In particular, we focus on the broad class of single-item multi-unit (SIMU) combinatorial auctions, where multiple identical units of one homogenous item are being auctioned. We also consider two common ways to express bidding preferences: OR bids and XOR bids. For SIMU auctions with each of the two bid types, we present comprehensive analyses of auction dynamics, which can determine winning bids that satisfy allocative fairness, and compute critical evaluative metrics needed to provide bidder support, including bid winning and deadness levels. We also design the data structures and algorithms needed to provide bidder support in real time for SIMU auctions of practically relevant sizes. The computational tools proposed in this paper can facilitate the efficient and more transparent implementation of SIMU combinatorial auctions in business- and consumer-oriented markets.

AB - Although combinatorial auctions are important mechanisms for many specialized applications, their adoption in general-purpose marketplaces is still fairly limited, partly due to the inherent difficulty in evaluating the efficacy of bids without the availability of comprehensive bidder support. In this paper, we present both theoretical results and computational designs to support real-time feedback to bidders in continuous combinatorial auctions, where bidders are free to join and leave the auction at any time. In particular, we focus on the broad class of single-item multi-unit (SIMU) combinatorial auctions, where multiple identical units of one homogenous item are being auctioned. We also consider two common ways to express bidding preferences: OR bids and XOR bids. For SIMU auctions with each of the two bid types, we present comprehensive analyses of auction dynamics, which can determine winning bids that satisfy allocative fairness, and compute critical evaluative metrics needed to provide bidder support, including bid winning and deadness levels. We also design the data structures and algorithms needed to provide bidder support in real time for SIMU auctions of practically relevant sizes. The computational tools proposed in this paper can facilitate the efficient and more transparent implementation of SIMU combinatorial auctions in business- and consumer-oriented markets.

KW - Allocative fairness

KW - Computational artifact design

KW - Continuous combinatorial auctions

KW - Electronic markets

KW - Multi-unit auctions

KW - Real-time bidder support

UR - http://www.scopus.com/inward/record.url?scp=85071882405&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85071882405&partnerID=8YFLogxK

U2 - 10.25300/MISQ/2019/14974

DO - 10.25300/MISQ/2019/14974

M3 - Article

AN - SCOPUS:85071882405

VL - 43

SP - 721

EP - 743

JO - MIS Quarterly: Management Information Systems

JF - MIS Quarterly: Management Information Systems

SN - 0276-7783

IS - 3

ER -