MUDA: A truthful multi-unit double-auction mechanism

Erel Segal-Halevi, Avinatan Hassidim, Yonatan Aumann

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

23 Scopus citations

Abstract

In a seminal paper, McAfee (1992) presented a truthful mechanism for double auctions, attaining asymptotically-optimal gain-from-trade without any prior information on the valuations of the traders. McAfee's mechanism handles single-parametric agents, allowing each seller to sell a single unit and each buyer to buy a single unit. This paper presents a double-auction mechanism that handles multi-parametric agents and allows multiple units per trader, as long as the valuation functions of all traders have decreasing marginal returns. The mechanism is prior-free, ex-post individually-rational, dominant-strategy truthful and strongly-budget-balanced. Its gain-from-trade approaches the optimum when the market size is sufficiently large.

Original languageEnglish
Title of host publication32nd AAAI Conference on Artificial Intelligence, AAAI 2018
Pages1193-1201
Number of pages9
ISBN (Electronic)9781577358008
StatePublished - 2018
Event32nd AAAI Conference on Artificial Intelligence, AAAI 2018 - New Orleans, United States
Duration: 2 Feb 20187 Feb 2018

Publication series

Name32nd AAAI Conference on Artificial Intelligence, AAAI 2018

Conference

Conference32nd AAAI Conference on Artificial Intelligence, AAAI 2018
Country/TerritoryUnited States
CityNew Orleans
Period2/02/187/02/18

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