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Multi-item Vickrey–English–Dutch auctions

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  • Andersson, Tommy
  • Erlanson, Albin

Abstract

Assuming that bidders wish to acquire at most one item, this paper defines a polynomial time multi-item auction that locates the VCG prices in a finite number of iterations for any given starting prices. This auction is called the Vickrey–English–Dutch auction and it contains the Vickrey–English auction [Sankaran, J.K., 1994. On a dynamic auction mechanism for a bilateral assignment problem. Math. Soc. Sci. 28, 143–150] and the Vickrey–Dutch auction [Mishra, D., Parkes, D., 2009. Multi-item Vickrey–Dutch auctions. Games Econ. Behav. 66, 326–347] as special cases. By means of numerical experiments, it is showed that when the auctioneer knows the biddersʼ value distributions, the Vickrey–English–Dutch auction is weakly faster than the Vickrey–English auction and the Vickrey–Dutch auction in 89 percent and 99 percent, respectively, of the investigated problems. A greedy version of the Vickrey–English–Dutch auction is demonstrated to perform even better in the simulation studies.

Suggested Citation

  • Andersson, Tommy & Erlanson, Albin, 2013. "Multi-item Vickrey–English–Dutch auctions," Games and Economic Behavior, Elsevier, vol. 81(C), pages 116-129.
    • Handle: RePEc:eee:gamebe:v:81:y:2013:i:c:p:116-129
    DOI: 10.1016/j.geb.2013.05.001
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    Cited by:

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    2. Ingebretsen Carlson, Jim, 2015. "An Approximate Auction," Working Papers 2015:19, Lund University, Department of Economics.
    3. Isa Hafalir & Onur Kesten & Katerina Sherstyuk & Cong Tao, 2023. "When Speed is of Essence: Perishable Goods Auctions," Working Papers 202310, University of Hawaii at Manoa, Department of Economics.
    4. Jim Ingebretsen Carlson, 2020. "A speedy auction using approximated bidders’ preferences," Annals of Operations Research, Springer, vol. 288(1), pages 65-93, May.
    5. Akiyoshi Shioura, 2017. "On the Partnership formation problem," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 2(1), pages 105-140, December.
    6. Kazuo Murota & Akiyoshi Shioura & Zaifu Yang, 2014. "Time Bounds for Iterative Auctions: A Unified Approach by Discrete Convex Analysis," Discussion Papers 14/27, Department of Economics, University of York.
    7. A. Talman & Zaifu Yang, 2015. "An efficient multi-item dynamic auction with budget constrained bidders," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(3), pages 769-784, August.
    8. Gerard van der Laan & Dolf Talman & Zaifu Yang, 2018. "Equilibrium in the Assignment Market under Budget Constraints," Discussion Papers 18/17, Department of Economics, University of York.
    9. Ingebretsen Carlson, Jim, 2016. "An Auction with Approximated Bidder Preferences - When an Auction has to be Quick," Working Papers 2016:12, Lund University, Department of Economics.
    10. Andersson, Tommy & Gudmundsson, Jens & Talman, Dolf & Yang, Zaifu, 2014. "A competitive partnership formation process," Games and Economic Behavior, Elsevier, vol. 86(C), pages 165-177.
    11. Cerezo Sánchez, David, 2017. "An Optimal ICO Mechanism," MPRA Paper 81285, University Library of Munich, Germany.
    12. Fuqiang Lu & Yanli Hu & Hualing Bi & Min Huang & Meng Zhao, 2018. "An Auction Approach for Cost and Schedule Management of IT Outsourcing Project," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(05), pages 1-23, October.
    13. Tierney, Ryan, 2019. "The problem of multiple commons: A market design approach," Games and Economic Behavior, Elsevier, vol. 114(C), pages 1-27.
    14. Kazuo Murota, 2016. "Discrete convex analysis: A tool for economics and game theory," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 1(1), pages 151-273, December.
    15. Zaifu Yang & Jingsheng Yu, 2018. "Efficient Ascending Menu Auctions with Budget Constrained Bidders," Discussion Papers 18/09, Department of Economics, University of York.

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    More about this item

    Keywords

    Polynomial time algorithms; Multi-item auctions; Unit-demand bidders; Iterations;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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