Development of a Double Combinatorial Auction Mechanism for Multi-item Goods

Project: Research

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Description

Auction is considered as one of the most effective allocation or trade methods of resources, goods and services. For instance, in logistics industry, a logistic company may have multi-item goods, multi-unit and multi-attribute, to be transported by a number of candidate transport companies and needs to determine the most cost-effective transport company through auction. It is a complex combinatorial auction problem. The auction mechanism needs to be "double" in which all the seller and buyers can bid for the multi-item goods simultaneously. Facing a large number of traders who sell or buy the multi-item goods online, the auction mechanism and the bidding strategies among traders are stringent problems to be studied. However, the traditional auction methods only deal with single-item goods and one-side bidding. The project is therefore proposed to fill the gap.This project aims to develop a novel double combinatorial auction mechanism for multi-item goods based on evidential reasoning, game theory and incentive mechanism design theory so that the combinatorial auction mechanism for multi-item goods is incentive for all traders, in sense of inducing their true valuation for the goods. The developed double combinatorial auction mechanism and bidding strategies could be incorporated in the online auction. The project will result in development of theory of auction and making contributions to the Hong Kong research base and industrial application in this area. It is particularly useful for Hong Kong companies that trade their goods online.

Detail(s)

Project number7002504
Grant typeSRG
StatusFinished
Effective start/end date1/04/0911/02/11