Abstract
Expectations run high for software that makes real-world decisions, particularly when money hangs in the balance. This third episode of the Drill Bits column shows how well-designed software can effectively create wealth by optimizing gains from trade in combinatorial auctions. We'll unveil a deep connection between auctions and a classic textbook problem, we'll see that clearing an auction resembles a high-stakes mutant Tetris, we'll learn to stop worrying and love an NP-hard problem that's far from intractable in practice, and we'll contrast the deliberative business of combinatorial auctions with the near-real-time hustle of high-frequency trading. The example software that accompanies this installment of Drill Bits implements two algorithms that clear combinatorial auctions.
Sign-in/Register to access full text options 
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 callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
