Secure Double Auction Protocols with Full Privacy Protection

  • Changjie Wang
  • Ho-fung Leung
  • Yumin Wang
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 2971)


Many researches have been done on the strategies of double auctions, an important class of auction protocols that permit multiple buyers and sellers to trade simultaneously in a market. Some well designed dominant-strategy incentive compatible double auction protocols have been proposed. However, the security and the privacy issues in double auctions are seldom studied in the literatures. In this paper, we propose secure double auction protocols, which achieve full privacy protection of participants. That is, each bid/ask information is always kept secret, even when there is any collusion of participants. It is clear that our suggestion is stronger than other previous work in which assumptions that certain auctioneers never collude are made. To achieve full privacy protection, we employ homomorphic ElGamal encryption and distribute the private key among the all participants. In such a way, all participants jointly compute the outcome of the double auction without revealing any additional bid/ask information. Also, the proposed protocol is publicly verifiable, so that the robustness is assured. The communication and computation complexity of the proposed protocols are analyzed.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Friedman, D., Rust, J. (eds.): The Double Auction Market: Institutions, Theories and Evidence. Addison-Wesley, Reading (1992)Google Scholar
  2. 2.
    Franklin, M.K., Reiter, M.K.: The design and implementation of a secure auction server. IEEE Trans. on Software Engineering 22(5), 302–312 (1996)CrossRefGoogle Scholar
  3. 3.
    Lipmaa, H., Asokan, N., Niemi, V.: Secure Vickrey auctions without threshold trust. In: Blaze, M. (ed.) FC 2002. LNCS, vol. 2357. Springer, Heidelberg (2003)CrossRefGoogle Scholar
  4. 4.
    Kikuch, H., Harkavy, M., Tygar, J.D.: Multi-round anonymous auction protocols. In: Proceedings of the First IEEE Workshop on Dependable and Real-time E-Commerce systems, pp. 62–69 (1998)Google Scholar
  5. 5.
    Cachin, C.: Efficient private bidding and auctions with an oblivious third party. In: Proceedings of the 6th ACM Conference on Computer and Communications Security, pp. 120–127 (1999)Google Scholar
  6. 6.
    Kikuchi, H.: (M+1)st-price auction protocol. In: Syverson, P.F. (ed.) FC 2001. LNCS, vol. 2339, p. 341. Springer, Heidelberg (2002)Google Scholar
  7. 7.
    Abe, M., Suzuki, K.: (M+1)-st price auction using homomorphic encryption. In: Naccache, D., Paillier, P. (eds.) PKC 2002. LNCS, vol. 2274, p. 115. Springer, Heidelberg (2002)CrossRefGoogle Scholar
  8. 8.
    McAfee Preston, R.: A dominant strategy double auction. Journal of Economic Theory (56), 434–450 (1992)Google Scholar
  9. 9.
    Wurman, P.R., Walsh, E.W., Wellman, P.M.: Flexible Double Auctions for Electronic Commerce: Theory and Implementation. Decision Support Systems 24, 17–27 (1998)CrossRefGoogle Scholar
  10. 10.
    Yokoo, M., Sakurai, Y., Matsubara, S.: Robust Double Auction Protocol against False-name Bids. In: Proceedings of 21st IEEE International Conference on Distributed Computing Systems (ICDCS 2001), pp. 137–145 (2001)Google Scholar
  11. 11.
    Vickrey, W.: Counterspeculation, Auctions, and Competitive Sealed Tenders. Journal of Finance, 8–37 (1961)Google Scholar
  12. 12.
    Schnorr, C.P.: Efficient signature generation by smart cards. Journal of Cryptology 4, 161–174 (1991)MATHCrossRefGoogle Scholar
  13. 13.
    Chaum, D., Pedersen, T.P.: Wallet databases with observers. In: Brickell, E.F. (ed.) CRYPTO 1992. LNCS, vol. 740, pp. 89–105. Springer, Heidelberg (1993)Google Scholar
  14. 14.
    Jakobsson, M., Juels, A.: Mix and Match: Secure Function Evaluation via Ciphertexts. In: Okamoto, T. (ed.) ASIACRYPT 2000. LNCS, vol. 1976, pp. 162–177. Springer, Heidelberg (2000)CrossRefGoogle Scholar
  15. 15.
    Abe, M.: Mix-Networks on Permutation Networks. In: Lam, K.-Y., Okamoto, E., Xing, C. (eds.) ASIACRYPT 1999. LNCS, vol. 1716, pp. 317–324. Springer, Heidelberg (1999)Google Scholar
  16. 16.
    ElGamal, T.: A Public-key cryptosystem and a signature scheme based on discret logarithms. In: Blakely, G.R., Chaum, D. (eds.) CRYPTO 1984. LNCS, vol. 196, pp. 10–18. Springer, Heidelberg (1985)CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • Changjie Wang
    • 1
  • Ho-fung Leung
    • 1
  • Yumin Wang
    • 2
  1. 1.Department of Computer Science and EngineeringThe Chinese University of Hong KongHong KongChina
  2. 2.State Key Laboratory of Integrated Services NetworksXidian UniversityXi’anChina

Personalised recommendations