Robust Combinatorial Auction Protocol against False-Name Bids

This paper presents a new combinatorial auction protocol (LDS protocol) that is robust against false-name bids. Internet auctions have become an integral part of Electronic Commerce (EC) and a promising field for applying agent and Artificial Intelligence technologies. Although the Internet provides an excellent infrastructure for combinatorial auctions, we must consider the possibility of a new type of cheating, i.e., an agent tries to profit from submitting several bids under fictitious names (false-name bids). If there exists no false-name bid, the generalized Vickrey auction (GVA) satisfies individual rationality, Pareto efficiency, and incentive compatibility. On the other hand, when false-name bids are possible, it is theoretically impossible for a combinatorial auction protocol to simultaneously satisfy these three properties. The Leveled Division Set (LDS) protocol, which is a modification of the GVA, utilizes reservation prices of auctioned goods for making decisions on wheth...

• Type: Conference
• Year: 2000
• Where: AAAI
• Authors: Makoto Yokoo, Yuko Sakurai, Shigeo Matsubara
• Keywords: AAAI 2000, Combinatorial Auction Protocol, False-name Bids, Intelligent Agents, LDS Protocol