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An Auction with Approximated Bidder Preferences - When an Auction has to be Quick

Ingebretsen Carlson, Jim LU (2016) In Working Papers
Abstract
This paper presents a combinatorial auction which is of particular interest when short completion times are of importance. It is based on a method for approximating the bidders' preferences over two types of items when complementarity between the two may exist. The resulting approximated preference relation is shown to be complete and transitive at any given price vector. It is shown that an approximated Walrasian equilibrium always exists if the approximated preferences of the bidders comply with the gross substitutes condition. This condition also ensures that the set of approximated equilibrium prices forms a complete lattice. A process is proposed which is shown to always reach the smallest approximated Walrasian price vector.
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Approximate auction, approximated preferences, non-quasi-linear preferences, D44
in
Working Papers
issue
2016:12
pages
29 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
a0fbe109-b3f6-4446-8e65-c8806835006f
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2016_012.htm
date added to LUP
2016-06-23 10:33:38
date last changed
2016-08-09 12:56:20
@misc{a0fbe109-b3f6-4446-8e65-c8806835006f,
  abstract     = {This paper presents a combinatorial auction which is of particular interest when short completion times are of importance. It is based on a method for approximating the bidders' preferences over two types of items when complementarity between the two may exist. The resulting approximated preference relation is shown to be complete and transitive at any given price vector. It is shown that an approximated Walrasian equilibrium always exists if the approximated preferences of the bidders comply with the gross substitutes condition. This condition also ensures that the set of approximated equilibrium prices forms a complete lattice. A process is proposed which is shown to always reach the smallest approximated Walrasian price vector.},
  author       = {Ingebretsen Carlson, Jim},
  keyword      = {Approximate auction,approximated preferences,non-quasi-linear preferences,D44},
  language     = {eng},
  number       = {2016:12},
  pages        = {29},
  publisher    = {ARRAY(0xa5f7358)},
  series       = {Working Papers},
  title        = {An Auction with Approximated Bidder Preferences - When an Auction has to be Quick},
  year         = {2016},
}