Method for optimal winner determination in combinatorial auctions
View Patent ↗In a multi-unit combinatorial auction, reverse auction, or exchange, a number of bids can be received, with each bid including one or more items and for each item a desired quantity thereof. Each bid also includes a price. A number of unique combinations of bids can be formed from the received bids, and the one combination of bids which represents the best value in terms of an auction setting, a reverse auction setting and/or an exchange setting can be determined. Thereafter, the bids forming this combination can be declared the winning bids of the auction, reverse auction or exchange.
1. A method of determining one or more winning bids in a multi-unit combinatorial many-to-many auction (exchange), the method comprising the steps of:
(a) inputting data regarding each item in the market;
(b) receiving a plurality of bids, with each bid including one or more items and for each item a desired quantity thereof, each bid further including a price, wherein each item is zero or more, each item and its associated quantity is tagged either for purchase or for sale, and the price is tagged as price to be received or a price to be paid;
(c) determining from plural combinations of bids which combination is optimal in terms of:
(i) maximizing a difference between the sum of the prices to be paid for said combination minus the sum of the prices to be received for said combination,
(ii) maximizing the sum of the prices to be paid for said combination,
(iii) maximizing the sum of the prices to be received for said combination, or
(iv) maximizing a function that processes the sum of the prices to be paid for said combination and the sum of the prices to be received,
wherein when all or part of the quantity of at least one item of said combination can be disposed of for free, the quantity of said at least one item in said combination to be purchased is less than or equal to the quantity for sale, and the quantity of each item of said combination to be purchased that cannot be disposed of for free is equal to the quantity for sale; and
(d) accepting as winning bids, the bids forming said combination.
2. The method set forth in claim 1 , wherein step (d) includes accepting in part at least one bid forming the combination.
3. The method as set forth in claim 2 , wherein each bid accepted in part includes less than the bid quantity of at least one item and/or less than the bid price.
4. The method as set forth in claim 1 , wherein all of the prices of all of the received bids are tagged as prices to be received or prices to be paid.
5. The method as set forth in claim 3 , wherein for each bid accepted in part, the quantity of each item and the price is reduced by the same percentage.
6. The method as set forth in claim 1 further including the step of encoding two or more of the received bids to be mutually exclusive and/or mutually non-exclusive of each other.
7. The method set forth in claim 6 , wherein step (d) includes accepting in part at least one bid forming the combination.
8. The method as set forth in claim 6 , wherein the encoding is done by logical “OR” constraints between two or more bids that are to be mutually non-exclusive.
9. The method as set forth in claim 6 , wherein the encoding is done by logical “XOR” constraints between the two or more bids that are to be mutually exclusive.
10. The method as set forth in claim 5 , wherein the encoding is imposed by a seller, a buyer and/or an auctioneer participating in the auction.
11. The method as set forth in claim 6 , further including the steps of:
combining groups of bids one of mutually exclusively or mutually non-exclusively; and
combining the bids within each group of bids the other of mutually exclusively or mutually non-exclusively.
12. The method as set forth in claim 11 , wherein the step of combining mutually exclusively is done by “XOR” constraints and the step of combining mutually non-exclusively is done by “OR” constraints.
13. The method as set forth in claim 11 , wherein the steps of combining mutually exclusively and/or combining mutually non-exclusively are imposed by a seller, a buyer and/or an auctioneer participating in the auction.
14. The method as set forth in claim 4 , further including the step of assigning a reserve price to at least one set of one or more of the input items and associated quantities for each of said items.
15. The method as set forth in claim 4 , further including the step of encoding two or more reserve priced sets to be mutually non-exclusive and/or mutually exclusive.
16. The method as set forth in claim 14 , wherein the encoding is done by a logical “OR” constraints between two or more bids that are to be mutually non-exclusive.
17. The method as set forth in claim 15 , wherein the encoding is done by logical “XOR” constraints between the two or more bids that are to be mutually exclusive.
18. The method as set forth in claim 15 , wherein the encoding is imposed by a seller, a buyer and/or an auctioneer participating in the auction.
19. The method as set forth in claim 15 , further including the steps of:
combining groups of bids one of mutually exclusively or mutually non-exclusively; and
combining the bids within each group of bids the other of mutually exclusively or mutually non-exclusively.
20. The method as set forth in claim 19 , wherein the step of combining mutually exclusively is done by “XOR” constraints and the step of combining mutually non-exclusively is done by “OR” constraints.
21. The method as set forth in claim 20 , wherein the steps of combining mutually exclusively and/or combining mutually non-exclusively are imposed by a seller, a buyer and/or an auctioneer participating in the auction.
22. The method as set forth in claim 1 , further including the steps of:
outputting data regarding the status of the auction; and
in response to said output of data, receiving new bids.
23. The method as set forth in claim 22 , wherein said data includes at least one of:
(i) one or more of the received bids or parts thereof;
(ii) one or more bids or parts thereof of the combination; and
(iii) a price quote for at least one set/bid including one or more of the input items and associated quantities of each items in the at least one set/bid.