Time and place: Thursday, May 13, 5:20-5:50, 202 Chernoff Hall
Title: Analysis of Two Classes of Decentralized Decision Systems:
Quantized Single and Double-Sided Auctions in Competitive Markets (½
Abstract: In this talk two quantized dynamical auction systems are
introduced to solve resource allocation problem in competitive markets. Toy
models for these proposed decentralized processes are similar to those for
market models in such areas as electricity systems [1,7,8,10,11] and
communication networks [5,9,3,6,4]. First, we present quantized dynamical
auctions for supply markets (that is to say, markets where only sellers are
assumed to have market power) which allocate a divisible resource among
arbitrary populations of suppliers. This case is symmetric to that where
quantized dynamical auctions are considered for demand markets. Rapid
convergence and approximate social optima are achieved in both cases .
Second, we describe the extension of these quantized mechanisms to the double
auction case where competition among both sellers and buyers is considered.
Double auctions are formulated in this work as two single-sided quantized
auctions which depend upon joint market quantities and price constraints.
Finally, the extended mechanism is shown to have similar rapid convergence
and market efficiency (i.e., maximum of social welfare) properties to
single-sided dynamical auctions.
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