Analysis of Automated Auctions
Web based computerised auctions are increasingly present in the Internet, and we can imagine that in the future automated buyer and seller agents will conduct automated transactions in this manner. The purpose of this paper is to model automated bidders and sellers which interact through a computerised auction. We model bidding process using random processes with discrete state-space. We obtain analytical solutions for a variety of single auction models, including English and Vickrey auctions, and relate the income per unit time to the other parameters including the rate of arrival of bids, the seller’s decision time, the value of the good, and the “rest time” of the seller between successive auctions. We examine how the seller’s “decision time” impacts the expected income per unit time received by the seller, and illustrate its effect via numerical examples.
KeywordsDecision Time Rest Time English Auction Seller Agent Vickrey Auction
Unable to display preview. Download preview PDF.
- 4.McAfee, R.P., McMillan, J.: Auctions and bidding. J. Economic Literature 25, 699–738 (1987)Google Scholar
- 7.Gelenbe, E., Pujolle, G.: Introduction to Networks of Queues, 2nd edn. J. Wiley & Sons, Chichester (1998)Google Scholar
- 10.Finch, S.R.: Optimal stopping constants, Mathematical Constants, pp. 361–363. Cambridge Univ. Press, Cambridge (2003)Google Scholar
- 11.Dash, N.R., Jennings, N.R., Parkes, D.C.: Computational mechanism design: a call to arms. IEEE Intelligent Systems, 40–47 (November-December 2003)Google Scholar
- 12.David, E., Rogers, A., Schiff, J., Kraus, S., Jennings, N.R.: Optimal design of English auctions with discrete bid levels. In: Proc. of 6th ACM Conference on Electronic Commerce (EC 2005), Vancouver, Canada, pp. 98–107 (2005)Google Scholar
- 13.Fatima, S., Wooldridge, M., Jennings, N.R.: Sequential auctions for objects with common and private values. In: Proc. 4th Int Joint Conf on Autonomous Agents and Multi-Agent Systems, Utrecht, Netherlands, pp. 635–642 (2005)Google Scholar