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MANSCI
2007

A Market-Based Optimization Algorithm for Distributed Systems

9 years 1 months ago
A Market-Based Optimization Algorithm for Distributed Systems
In this paper, a market-based decomposition method for decomposable linear systems is developed. The solution process iterates between a master problem that solves the market-matching problem, and subproblems that solve the agents’ bundle determination problems. Starting from any initial price and feasible allocation, system optimality can be achieved under a dynamic market-trading algorithm in a finite number of trades. The final market clearing prices are discovered by this market trading and an efficient allocation is achieved by direct, wealth improving resource exchanges among self-interested agents. Certain types of strategic behavior by the agents and a dealer in the marketplace are studied as well. Our proposed market mechanism addresses price dynamics, incentive issues, and economic transactions of real-world, distributed decision making situations more realistically than traditional decomposition approaches. In addition, it can be operated in both synchronous and asynchron...
Zhiling Guo, Gary J. Koehler, Andrew B. Whinston
Added 16 Dec 2010
Updated 16 Dec 2010
Type Journal
Year 2007
Where MANSCI
Authors Zhiling Guo, Gary J. Koehler, Andrew B. Whinston
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