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An efficient local search algorithm for the winner determination problem

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Abstract

Combinatorial auction, which allows bidders to bid on combinations of items, is an important type of market mechanism. The winner determination problem (WDP) has extensive applications in combinatorial auctions, and attracts more and more attention due to its strong relevance to business. However, this problem is intractable in theory as it has been proven to be NP-hard, and is also a challenging combinatorial optimization problem in practice. This paper is devoted to designing an efficient heuristic algorithm for solving the WDP. This proposed heuristic algorithm dubbed abcWDP is based on an effective yet simple local search framework, and equipped with three novel strategies, i.e., configuration checking, free-bid exploiting, and pseudo-tie mechanism. Extensive computational experiments on a broad range of benchmarks demonstrate that abcWDP performs much better than state-of-the-art algorithms and CPLEX in terms of both revenue and running time. More encouragingly, our abcWDP algorithm as a sequential algorithm even achieves better computational results than the multi-thread implemented algorithm \(\hbox {CA}_\mathrm{RA}\), which confirms its efficiency.

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Notes

  1. http://wireless.fcc.gov/auctions.

  2. Our algorithm uses a random selection strategy to handle this situation.

  3. According to the Intel Ark, the differnence between E7-8830 and E7-4830 is only the max CPU configuration.

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Acknowledgements

The authors thank Carlos Eduardo de Andrade for kindly providing the code of \(\hbox {CA}_\mathrm{RA}\) and nice help on compiling as well as execution arguments. We also want to express our appreciation to anonymous reviewers for comments and advices.

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Correspondence to Minghao Yin.

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This work was supported in part by National Natural Science Foundation of China under Grant Nos. (61370156, 61503074, 61502464), Program for New Century Excellent Talents in University (NCET-13-0724) and the Open Project Program of the State Key Laboratory of Mathematical Engineering and Advanced Computing under Grant No. (2016A06).

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Zhang, H., Cai, S., Luo, C. et al. An efficient local search algorithm for the winner determination problem. J Heuristics 23, 367–396 (2017). https://doi.org/10.1007/s10732-017-9344-y

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