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Developing adaptive auction mechanisms

Developing adaptive auction mechanisms Mechanism design has traditionally been a largely analytic process, relying on assumptions such as fully rational bidders. In practice, however, these assumptions may not hold, making bidder behavior difficult to model and complicating the design process. To address this issue, we propose a different approach to mechanism design. Instead of relying on analytic methods that require specific assumptions about bidders, our approach is to create a self-adapting mechanism that adjusts auction parameters in response to past auction results. In this paper, we describe our approach and then present an example of its implementation to illustrate its efficacy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png ACM SIGecom Exchanges Association for Computing Machinery

Developing adaptive auction mechanisms

Pardoe, David; Stone, Peter
ACM SIGecom Exchanges , Volume 5 (3) – Apr 1, 2005
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References (18)

Publisher
Association for Computing Machinery
Copyright
Copyright © 2005 by ACM Inc.
ISSN
1551-9031
DOI
10.1145/1120680.1120682
Publisher site
See Article on Publisher Site

Abstract

Mechanism design has traditionally been a largely analytic process, relying on assumptions such as fully rational bidders. In practice, however, these assumptions may not hold, making bidder behavior difficult to model and complicating the design process. To address this issue, we propose a different approach to mechanism design. Instead of relying on analytic methods that require specific assumptions about bidders, our approach is to create a self-adapting mechanism that adjusts auction parameters in response to past auction results. In this paper, we describe our approach and then present an example of its implementation to illustrate its efficacy.

Journal

ACM SIGecom Exchanges – Association for Computing Machinery

Published: Apr 1, 2005

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