Beyond quasi-linear utility: Strategy/false-name-proof multi-unit auction protocols

Yuko Sakurai, Yasumasa Saito, Atsushi Iwasaki, Makoto Yokoo

Research output: Chapter in Book/Report/Conference proceedingConference contribution

5 Citations (Scopus)

Abstract

We develop strategy/false-name-proof multi-unit auction protocols for non-quasi-linear utilities. One almost universal assumption in auction theory literature is that each bidder has quasi-linear utility. However, in practice, a bidder might have some kind of financial condition including budget constraints. The Vickrey-Clarke-Groves (VCG) protocol is designed to be truthful under the quasi-linear assumption and will break down if this assumption does not hold. We show with a simple modification, the VCG can handle non-quasi-linear utilities. However, there are possibilities that the modified VCG sacrifices significant efficiency loss, since it only uses the gross utilities for determining tentative allocation and payments. Also, it has been shown that the VCG is vulnerable to a false-name bid which is a new type of cheating on the Internet. To improve efficiency without collecting the entire utility functions and guarantee falsename-proofness, we develop a false-name-proof open ascending auction protocol.

Original languageEnglish
Title of host publicationProceedings - 2008 IEEE/WIC/ACM International Conference on Intelligent Agent Technology, IAT 2008
Pages417-423
Number of pages7
DOIs
Publication statusPublished - Dec 1 2008
Event2008 IEEE/WIC/ACM International Conference on Intelligent Agent Technology, IAT 2008 - Sydney, NSW, Australia
Duration: Dec 9 2008Dec 12 2008

Publication series

NameProceedings - 2008 IEEE/WIC/ACM International Conference on Intelligent Agent Technology, IAT 2008

Other

Other2008 IEEE/WIC/ACM International Conference on Intelligent Agent Technology, IAT 2008
CountryAustralia
CitySydney, NSW
Period12/9/0812/12/08

All Science Journal Classification (ASJC) codes

  • Artificial Intelligence
  • Software

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    Sakurai, Y., Saito, Y., Iwasaki, A., & Yokoo, M. (2008). Beyond quasi-linear utility: Strategy/false-name-proof multi-unit auction protocols. In Proceedings - 2008 IEEE/WIC/ACM International Conference on Intelligent Agent Technology, IAT 2008 (pp. 417-423). [4740659] (Proceedings - 2008 IEEE/WIC/ACM International Conference on Intelligent Agent Technology, IAT 2008). https://doi.org/10.1109/WIIAT.2008.217