Abstract
The network economy is a term for today's global relationship among economic subjects characterized by massive connectivity. Today's network systems provide the infrastructure and foundation for the functioning of societies and economies. They come in many forms and include physical networks such as transportation and logistical networks, communication networks, energy networks, as well as more abstract networks as economic, financial, social, and knowledge networks. The paper presents modeling of auctions in network economy. Auctions are important market mechanisms for the allocation of goods and services. Combinatorial auctions are those auctions in which bidders can place bids on combinations of items. Combinatorial auction is an appropriate instrument for selling network capacity. The winner determination problem in a combinatorial auction for selling network capacity is formulated. The model can be formulated as a multicommodity flow problem and efficient algorithms can be used.
Highlights
The paper presents modeling of combinatorial auctions in network economy
The model is based on combinatorial auctions with a network structure of items
From different types of combinatorial auctions we present an auction of indivisible items with one seller and several buyers
Summary
The paper presents modeling of combinatorial auctions in network economy. It is an integration of two characteristic elements of today’s economic reality, the network economy and auction mechanisms. Auctions are preferred often to other common processes because they are open, quite fair, easy to understand by participants, and lead to economically efficient outcomes. Their popularity is caused by expansion of e-commerce. For auctions for selling network capacity it is useful to use so called combinatorial auctions. In the paper the winner determination problem for selling network capacities is formulated. The model is based on combinatorial auctions with a network structure of items
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
