Abstract
In the large number of papers published on pricing schemes for telecommunication networks in the past few years, auctionning for bandwidth has been proved to be one of the main streams. We deal here with a method called Progressive Second Price (PSP) Auction, that we point out to have two drawbacks: first, the initial bidder has no interest in giving his true valuation of the bandwidth, and second, switching the order of bid between players can provide different Nash equilibria resulting in different seller revenues. We then design an adaptation of PSP allowing to solve these problems by asking to the players excluded from the game to submit a specific bid, which acts as a sanction on the other players.
This work has been partially supported by the INRIA project PRIXNET (see http://www.irisa.fr/armor/Armor-Ext/RA/prixnet/ARC.htm)
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Falkner, M., Devetsikiotis, M., Lambadaris, I.: An Overview of Pricing Concepts for Broadband IP Networks. IEEE Communications Surveys & Tutorials 3(2) (2000)
Lazar, A.A., Semret, N.: Design and analysis of the progressive second price auction for network bandwidth sharing. Telecommunications Systems - Special issue on Network Economics (1999)
Maillé, P.: Market clearing price and equilibria of the progressive second price mechanism. Technical Report 1522, IRISA (March 2003)
Maillé, P., Tuffin, B.: The progressive second price mechanism in a stochastic environment. To appear in Netnomics (2003)
Semret, N.: Market Mechanisms for Network Resource Sharing. PhD thesis, Columbia University (1999)
Falkner, M., Devetsikiotis, M., Lambadaris, I.: An Overview of Pricing Concepts for Broadband IP Networks. IEEE Communications Surveys & Tutorials 3(2) (2000)
Tuffin, B.: Revisited Progressive Second Price Auctions for Charging Telecomunication Networks. Telecommunication Systems 20(3), 255–263 (2002)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2003 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Maillé, P., Tuffin, B. (2003). A Progressive Second Price Mechanism with a Sanction Bid from Excluded Players. In: Stiller, B., Carle, G., Karsten, M., Reichl, P. (eds) Group Communications and Charges. Technology and Business Models. NGC ICQT 2003 2003. Lecture Notes in Computer Science, vol 2816. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-39405-1_30
Download citation
DOI: https://doi.org/10.1007/978-3-540-39405-1_30
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-20051-2
Online ISBN: 978-3-540-39405-1
eBook Packages: Springer Book Archive