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An Algorithmic Approach to Multi-Item Auctions with Indivisibles

Gudmundsson, Jens LU (2010) NEKM01 20101
Department of Economics
Abstract
In this essay the problem of finding fair equilibria in auctions with multiple heterogeneous and indivisible items is investigated. We assume an equal number of bidders demanding items as number of items, and that every bidder is assigned exactly one item. Among the theoretical results we show the existence of an equilibrium, strategy-proofness for a particular set of prices and convergence of the algorithm proposed by Demange, Gale and Sotomayor (Journal of Political Economy, 94:863-872, 1986). Furthermore, we suggest some alternative algorithms and evaluate a pair of them in a computer based simulation study. The clear conclusion is that the ED-Algorithm, a special case of the algorithm by Andersson, Andersson and Talman (Working paper,... (More)
In this essay the problem of finding fair equilibria in auctions with multiple heterogeneous and indivisible items is investigated. We assume an equal number of bidders demanding items as number of items, and that every bidder is assigned exactly one item. Among the theoretical results we show the existence of an equilibrium, strategy-proofness for a particular set of prices and convergence of the algorithm proposed by Demange, Gale and Sotomayor (Journal of Political Economy, 94:863-872, 1986). Furthermore, we suggest some alternative algorithms and evaluate a pair of them in a computer based simulation study. The clear conclusion is that the ED-Algorithm, a special case of the algorithm by Andersson, Andersson and Talman (Working paper, Department of Economics, Lund University, 2010), is the better one. (Less)
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author
Gudmundsson, Jens LU
supervisor
organization
course
NEKM01 20101
year
type
H1 - Master's Degree (One Year)
subject
keywords
indivisible items, multi-item auctions, simulation study, fairness
language
English
id
1612257
date added to LUP
2010-06-22 11:04:14
date last changed
2010-06-22 11:04:14
@misc{1612257,
  abstract     = {In this essay the problem of finding fair equilibria in auctions with multiple heterogeneous and indivisible items is investigated. We assume an equal number of bidders demanding items as number of items, and that every bidder is assigned exactly one item. Among the theoretical results we show the existence of an equilibrium, strategy-proofness for a particular set of prices and convergence of the algorithm proposed by Demange, Gale and Sotomayor (Journal of Political Economy, 94:863-872, 1986). Furthermore, we suggest some alternative algorithms and evaluate a pair of them in a computer based simulation study. The clear conclusion is that the ED-Algorithm, a special case of the algorithm by Andersson, Andersson and Talman (Working paper, Department of Economics, Lund University, 2010), is the better one.},
  author       = {Gudmundsson, Jens},
  keyword      = {indivisible items,multi-item auctions,simulation study,fairness},
  language     = {eng},
  note         = {Student Paper},
  title        = {An Algorithmic Approach to Multi-Item Auctions with Indivisibles},
  year         = {2010},
}