Sciweavers

EOR
2007

Trade reduction vs. multi-stage: A comparison of double auction design approaches

13 years 3 months ago
Trade reduction vs. multi-stage: A comparison of double auction design approaches
With the growth of electronic markets, designing double auction mechanisms that are applicable to emerging market structures has become an important research topic. In this paper, we investigate two truthful double auction design approaches, the Trade Reduction Approach and the Multi-Stage Design Approach, and compare their resulting mechanisms in various exchange environments. We find that comparing with the Trade Reduction Approach, the Multi-Stage Design Approach offers mechanisms applicable to more complicated exchange environments. Furthermore, for the known trade reduction mechanisms, we prove that the corresponding mechanisms under the multi-stage design approach are superior in terms of both social efficiency and individual payoffs, in each exchange environment of interest. Our computational tests show that the mechanisms under the multi-stage design approach achieve very high efficiency in various scenarios. Ó 2006 Published by Elsevier B.V.
Leon Yang Chu, Zuo-Jun Max Shen
Added 13 Dec 2010
Updated 13 Dec 2010
Type Journal
Year 2007
Where EOR
Authors Leon Yang Chu, Zuo-Jun Max Shen
Comments (0)