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WIRTSCHAFTSINFORMATIK

, Volume 48, Issue 1, pp 7–15 | Cite as

Distributed ascending proxy auction — A cryptographic approach

  • Daniel Rolli
  • Michael Conrad
  • Dirk Neumann
  • Christoph Sorge
WI-Schwerpunktaufsatz

Abstract

In recent years, auctions have become a very popular price discovery mechanism in the Internet. The common auction formats are typically centralized in nature. The peer-to-peer paradigm demands gearing up auctions for decentralized infrastructures. In this context, this paper proposes a distributed mechanism for ascending second-price auctions that relies on standard cryptographic algorithms. In essence, the auction protocol has the capability of preserving the privacy of the winning bidder’s true valuation.

The auction protocol makes use of a high number of auctioneers divided into several groups. A bidder creates an encrypted chain of monotonously increasing bidding steps, where each bidding step can be decrypted by a different auctioneer group. This considerably reduces the attack and manipulation possibilities of malicious auctioneers. In addition, this secure approach does not require bidders to be online unless they are submitting their bid chain to the auctioneers.

Keywords

Internet Economics Distributed Auctions Privacy Trust Security Protocols Peer-to-Peer Systems 

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Copyright information

© Vieweg Verlag/GWV Fachverlage GmbH 2006

Authors and Affiliations

  • Daniel Rolli
    • 1
  • Michael Conrad
    • 2
  • Dirk Neumann
    • 1
  • Christoph Sorge
    • 2
  1. 1.Universität Karlsruhe (TH)KarlsruheGermany
  2. 2.Institut für TelematikUniversität Karlsruhe (TH)KarlsruheGermany

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