Agent Competition Double-Auction Mechanism

We propose an agent competition double auction (AC-DA) mechanism in this paper. The AC-DA mechanism is strategy-proof, individual rational, and weakly budget-balanced if the general "agents are substitutes" condition is satisfied. The AC-DA mechanism also achieves asymptotic efficiency when applied to the exchange environment with pair-related costs (e.g., the transportation costs) between buyers and sellers.

• Type: Journal
• Year: 2006
• Where: MANSCI
• Authors: Leon Yang Chu, Zuo-Jun Max Shen
• Keywords: AC-DA Mechanism, Asymptotic Efficiency, Competition Double Auction, MANSCI 2006