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Author Lehmann, Daniel ♦ Oallaghan, Liadan Ita ♦ Shoham, Yoav
Source ACM Digital Library
Content type Text
Publisher Association for Computing Machinery (ACM)
File Format PDF
Copyright Year ©2002
Language English
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Combinatorial auctions ♦ Computational complexity ♦ Mechanism design
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.
ISSN 00045411
Age Range 18 to 22 years ♦ above 22 year
Educational Use Research
Education Level UG and PG
Learning Resource Type Article
Publisher Date 2002-09-01
Publisher Place New York
e-ISSN 1557735X
Journal Journal of the ACM (JACM)
Volume Number 49
Issue Number 5
Page Count 26
Starting Page 577
Ending Page 602

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Source: ACM Digital Library