Toward understanding the dynamics of bidder behavior in continuous combinatorial auctions: Agent-based simulation approach

Ali Mahdavi Adeli, Gediminas Adomavicius, Alok Gupta

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Combinatorial auctions represent sophisticated market mechanisms that are becoming increasingly important in various business applications due to their ability to improve economic efficiency and auction revenue, especially in settings where participants tend to exhibit more complex user preferences and valuations. While recent studies on such auctions have found heterogeneity in bidder behavior and its varying effect on auction outcomes, the area of bidder behavior and its impact on economic outcomes in combinatorial auctions is still largely underexplored. One of the main reasons is that it is nearly impossible to control for the type of bidder behavior in real world or experimental auction setups. We propose an agent-based modeling approach to replicate human bidder behavior in continuous combinatorial auctions and leverage our agents to simulate a wide variety of competition types, including experimentally unobserved ones that could not otherwise be studied. The capabilities of the proposed approach enable more comprehensive studies (via richer controlled experiments) of bidding behavior in the complex and highly dynamic decision environment of continuous combinatorial auctions.

Original languageEnglish (US)
Title of host publicationProceedings of the 50th Annual Hawaii International Conference on System Sciences, HICSS 2017
EditorsTung X. Bui, Ralph Sprague
PublisherIEEE Computer Society
Pages4220-4229
Number of pages10
ISBN (Electronic)9780998133102
StatePublished - 2017
Event50th Annual Hawaii International Conference on System Sciences, HICSS 2017 - Big Island, United States
Duration: Jan 3 2017Jan 7 2017

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2017-January
ISSN (Print)1530-1605

Conference

Conference50th Annual Hawaii International Conference on System Sciences, HICSS 2017
Country/TerritoryUnited States
CityBig Island
Period1/3/171/7/17

Bibliographical note

Publisher Copyright:
© 2017 Proceedings of the Annual Hawaii International Conference on System Sciences. All rights reserved.

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