zbMATH — the first resource for mathematics

Multilateral deferred-acceptance mechanisms. (English) Zbl 1406.91158
Markakis, Evangelos (ed.) et al., Web and internet economics. 11th international conference, WINE 2015, Amsterdam, The Netherlands, December 9–12, 2015. Proceedings. Berlin: Springer (ISBN 978-3-662-48994-9/pbk; 978-3-662-48995-6/ebook). Lecture Notes in Computer Science 9470, 173-186 (2015).
Summary: We study the design of multilateral markets, where agents with several different roles engage in trade. We first observe that the modular approach proposed by P. Dütting et al. [Games Econ. Behav. 105, 59–83 (2017; Zbl 1415.91136)] for bilateral markets can also be applied in multilateral markets. This gives a general method to design Deferred Acceptance mechanisms in such settings; these mechanisms, defined by P. Milgrom and I. Segal [“Deferred-acceptance auctions and radio spectrum reallocation”, in: Proceedings of the 15th ACM conference on economics and computation, EC’14. New York, NY: Association for Computing Machinery (ACM). 185–186 (2014; doi:10.1145/2600057.2602834)], are known to satisfy some highly desired properties.
We then show applications of this framework in the context of supply chains. We show how existing mechanisms can be implemented as multilateral deferred acceptance mechanisms, and thus exhibit nice practical properties (as group strategy-proofness and equivalence to clock auctions). We use the general framework to design a novel mechanism that improves upon previous mechanisms in terms of social welfare. Our mechanism manages to avoid “trade reduction” in some scenarios, while maintaining the incentive and budget-balance properties.
For the entire collection see [Zbl 1326.68026].
91B26 Auctions, bargaining, bidding and selling, and other market models
90B05 Inventory, storage, reservoirs
Full Text: DOI
[1] Babaioff, M., Nisan, N.: Concurrent auctions across the supply chain. J. Artif. Intell. Res. 21, 595–629 (2004) · Zbl 1080.68727
[2] Babaioff, M., Walsh, W.E.: Incentive-compatible, budget-balanced, yet highly efficient auctions for supply chain formation. Decision Sup. Sys. 39(1), 123–149 (2005) · doi:10.1016/j.dss.2004.08.008
[3] Cripps, M.W., Swinkels, J.M.: Efficiency of large double auctions. Econometrica 74(1), 47–92 (2006) · Zbl 1112.91023 · doi:10.1111/j.1468-0262.2006.00649.x
[4] Dütting, P., Gkatzelis, V., Roughgarden, T.: The performance of deferred-acceptance auctions. In: Proceedings of the Fifteenth ACM Conference on Economics and Computation, pp. 187–204. ACM (2014) · Zbl 1386.91072 · doi:10.1145/2600057.2602861
[5] Dütting, P., Roughgarden, T., Talgam-Cohen, I.: Modularity and greed in double auctions. In: Proceedings of the Fifteenth ACM Conference on Economics and Computation, pp. 241–258. ACM (2014) · Zbl 1415.91136 · doi:10.1145/2600057.2602854
[6] Lehmann, D., Oćallaghan, L.I., Shoham, Y.: Truth revelation in approximately efficient combinatorial auctions. J. ACM (JACM) 49(5), 577–602 (2002) · Zbl 1326.91011 · doi:10.1145/585265.585266
[7] Lubin, B., Parkes, D.C.: Approximate strategyproofness. Curr. Sci. 103(9), 1021–1032 (2012)
[8] McAfee, R.P.: A dominant strategy double auction. J. Econ. Theor. 56(2), 434–450 (1992) · Zbl 0763.90036 · doi:10.1016/0022-0531(92)90091-U
[9] Mehta, A., Roughgarden, T., Sundararajan, M.: Beyond moulin mechanisms. In: 8th ACM Conference on Electronic Commerce, EC 2007, pp. 1–10 (2007) · Zbl 1168.91314 · doi:10.1145/1250910.1250912
[10] Milgrom, P., Segal, I.: Deferred-acceptance auctions and radio spectrum reallocation. In: Proceedings of the Fifteenth ACM Conference on Economics and Computation, pp. 185–186. ACM (2014) · doi:10.1145/2600057.2602834
[11] Moulin, H.: Incremental cost sharing: characterization by coalition strategy-proofness. Soc. Choice Welfare 16(2), 279–320 (1999) · Zbl 1066.91502 · doi:10.1007/s003550050145
[12] Myerson, R.B., Satterthwaite, M.A.: Efficient mechanisms for bilateral trading. J. Econ. Theor. 29(2), 265–281 (1983) · Zbl 0523.90099 · doi:10.1016/0022-0531(83)90048-0
[13] Rustichini, A., Satterthwaite, M.A., Williams, S.R.: Convergence to efficiency in a simple market with incomplete information. Econometrica 62(5), 1041–63 (1994) · Zbl 0820.90031 · doi:10.2307/2951506
[14] Satterthwaite, M.A., Williams, S.R.: The optimality of a simple market mechanism. Econometrica 70(5), 1841–1863 (2002) · Zbl 1141.91408 · doi:10.1111/1468-0262.00355
[15] Singer, Y.: Budget feasible mechanisms. In: The 51st Annual Symposium on Foundations of Computer Science, FOCS 2010, pp. 765–774 (2010) · doi:10.1109/FOCS.2010.78
[16] Vorobeychik, Y., Kiekintveld, C., Wellman, M.P.: Empirical mechanism design: methods, with application to a supply-chain scenario. In: ACM Conference on Electronic Commerce, pp. 306–315 (2006) · doi:10.1145/1134707.1134741
[17] Walsh, W., Wellman, M., Ygge, F.: Combinatorial auctions for supply chain formation. In: Proceedings of the ACM Conference on Electronic Commerce, pp. 260–269 (2000) · doi:10.1145/352871.352900
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.