Vidal's libraryTitle: | Truth revelation in approximately efficient combinatorial auctions |
Author: | Daniel Lehmann, Laidan Ita Ocallaghan, and Yoav Shoham |
Journal: | Journal of the ACM |
Volume: | 49 |
Number: | 5 |
Year: | 2002 |
DOI: | 10.1145/585265.585266 |
Abstract: | Some important classical mechanisms considered in Microeconomics and Game Theory require the solution of a difficult optimization problem. This is true of mechanisms for combinatorial auctions, which have in recent years assumed practical importance, and in particular of the gold standard for combinatorial auctions, the Generalized Vickrey Auction (GVA). Traditional analysis of these mechanisms---in particular, their truth revelation properties---assumes that the optimization problems are solved precisely. In reality, these optimization problems can usually be solved only in an approximate fashion. We investigate the impact on such mechanisms of replacing exact solutions by approximate ones. Specifically, we look at a particular greedy optimization method. We show that the GVA payment scheme does not provide for a truth revealing mechanism. We introduce another scheme that does guarantee truthfulness for a restricted class of players. We demonstrate the latter property by identifying natural properties for combinatorial auctions and showing that, for our restricted class of players, they imply that truthful strategies are dominant. Those properties have applicability beyond the specific auction studied. |
Cited by 239 - Google Scholar
@Article{lehmann02a,
author = {Daniel Lehmann and Laidan Ita Ocallaghan and Yoav
Shoham},
title = {Truth revelation in approximately efficient
combinatorial auctions},
journal = {Journal of the {ACM}},
year = 2002,
volume = 49,
number = 5,
abstract = {Some important classical mechanisms considered in
Microeconomics and Game Theory require the solution
of a difficult optimization problem. This is true of
mechanisms for combinatorial auctions, which have in
recent years assumed practical importance, and in
particular of the gold standard for combinatorial
auctions, the Generalized Vickrey Auction
(GVA). Traditional analysis of these mechanisms---in
particular, their truth revelation
properties---assumes that the optimization problems
are solved precisely. In reality, these optimization
problems can usually be solved only in an
approximate fashion. We investigate the impact on
such mechanisms of replacing exact solutions by
approximate ones. Specifically, we look at a
particular greedy optimization method. We show that
the GVA payment scheme does not provide for a truth
revealing mechanism. We introduce another scheme
that does guarantee truthfulness for a restricted
class of players. We demonstrate the latter property
by identifying natural properties for combinatorial
auctions and showing that, for our restricted class
of players, they imply that truthful strategies are
dominant. Those properties have applicability beyond
the specific auction studied.},
url = {http://jmvidal.cse.sc.edu/library/lehmann02a.pdf},
doi = {10.1145/585265.585266},
cluster = {5741541263507192013},
keywords = {combinatorial auctions}
}
Last modified: Wed Mar 9 10:15:39 EST 2011