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Optimizing auctioneer's revenues in expanding multi-unit auctions

Published: 25 July 2005 Publication History

Abstract

In this study we provide a strategy that maximizes the expected revenues of the auctioneer in an expanding multi-unit auction. We model the auction process as a state graph in which nodes are auction states and edges are transitions. With this model, finding the optimal strategy is equivalent to solving a search problem on the state graph. We prove that the search problem to be solved, although seemingly exponentially complex, is actually linearly bounded. Based on this result, we introduce an informed strategy that optimizes the auctioneer's revenue.

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[1]
www.olsale.co.il/olsale/rules.aspx?type=1

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  • (2006)Computationally efficient and revenue optimized auctioneer's strategy for expanding auctionsProceedings of the fifth international joint conference on Autonomous agents and multiagent systems10.1145/1160633.1160845(1175-1182)Online publication date: 8-May-2006

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    cover image ACM Conferences
    AAMAS '05: Proceedings of the fourth international joint conference on Autonomous agents and multiagent systems
    July 2005
    1407 pages
    ISBN:1595930930
    DOI:10.1145/1082473
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    New York, NY, United States

    Publication History

    Published: 25 July 2005

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    Author Tags

    1. electronic commerce
    2. expanding auction

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    • (2006)Computationally efficient and revenue optimized auctioneer's strategy for expanding auctionsProceedings of the fifth international joint conference on Autonomous agents and multiagent systems10.1145/1160633.1160845(1175-1182)Online publication date: 8-May-2006

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