In practice, the rules in most open English auctions require participants to raise bids by a sizeable, discrete amount. Furthermore, some bidders are typically more aggressive in seeking to become the “current bidder” during competitive bidding. Most auction theory, however, has assumedbidders can place any tiny “continuous” bid increase, and recommend as optimal the tiniest possible increase. ...

The optimal bidding strategy for a generation company is a complex decision making problem involving numerous uncertainties. Generally, all market participants attempt to refine their strategies to earn greater profit. Success in the market requires not only successful forecasting of demand and other market conditions but also anticipating rival behaviours. The main objective of this paper is t...

This paper models continuous-time mass bidding markets, such as keyword auctions and market-based resource allocation systems, as a stochastic dynamic system that fluctuates around an average value under the influence of its users. The user’s objective to maximize his long-term average utility is formulated as a stochastic control problem. The optimal bidding strategy is calculated both analyti...

The bidding decision making problem is studied from a supplier’s viewpoint in a spot market environment. The decision-making problem is formulated as a Markov Decision Process a discrete stochastic optimization method All other suppliers are modeled by their bidding parameters with corresponding probabilities. A systematic method is developed to calculate transition probabilities and rewards. A...

Combinatorial auctions, which allow agents to bid directly for bundles of resources, are necessary for optimal auction-based solutions to resource allocation problems with agents that have non-additive values for resources, such as distributed scheduling and task assignment problems. We introduce iBundle, the first iterative combinatorial auction that is optimal for a reasonable agent bidding s...

The current study offers an insight into how auction ending rules can affect distribution online bidders’ strategies. While traditional wisdom in this area suggested that auction ending rules can encourage and suppress certain bidding behaviors, limited efforts have been taken to investigate how they can affect winning likelihood and price premium distribution across different bidding strategie...