A winner determination algorithm for multi-unit combinatorial auctions with reserve prices

Abstract

Combinatorial auction mechanisms have been used in many applications such as resource and task allocation, planning and time scheduling in multi-agent systems, in which the items to be allocated are complementary or substitutable. The winner determination in combinatorial auction itself is a NP-complete problem, and has attracted many attentions of researchers world wide. Some outstanding achievements have been made including CPLEX and CABOB algorithms on this topic. To our knowledge, the research into multi-unit combinatorial auctions with reserve prices considered is more or less ignored. To this end, we present a new algorithm for multi-unit combinatorial auctions with reserve prices, which is based on Sandholm's work. An efficient heuristic function is developed for the new algorithm. Experiments have been conducted. The experimental results show that auctioneer agent can find the optimal solution efficiently for a reasonable problem scale with our algorithm.