In this paper, we discuss how advertisers, by considering minimum return on investment (ROI), change their bidding and, consequently the auctioneer’s revenue in sponsored search advertisement auctions. We analyze the VickreyClarke-Groves (VCG), Generalized Second Price (GSP) and Generalized First Price (GFP) auction mechanisms in that respect. Analytical results are presented for the dominant s...

Human cheating has been a barrier to establishing trust among e-commerce users, throughout the last two decades. In particular, in online auctions, since all the transactions occur among anonymous users, trust is difficult to establish and maintain. Shill bidding happens when bidders bid exclusively to inflate (in forward auctions) or deflate (in reverse auctions) prices in online auctions. At ...

This paper investigates bidding strategy in a package auction under incomplete information. I consider a simplified and limited case, where each bidder wants a unique bundle of goods and evaluates them as perfect complements. The auction is standard ascending with package bidding, however, I adopt the “proxy bidding rule.” The auction is interpretted as a limited version of Ausubel and Milgrom ...

This paper studies a supply chain consisting of two suppliers and one retailer in a spot market, where the retailer uses the newsvendor solution as its purchase policy, and suppliers compete for the retailer’s purchase. Since each supplier’s bidding strategy affects the other’s profit, a game theory approach is used to identify optimal bidding strategies. We prove the existence and uniqueness o...

The online auctions are one of the most effective ways of negotiation of salable goods over the internet. To be successful in open multiagent environments, agents must be capable of adapting different strategies and tactics to their prevailing circumstances. This paper presents a software test-bed for studying autonomous bidding strategies in simulated auctions for procuring goods. It shows tha...

In environments with “diffuse” uncertainty, we study bidding behavior in auctions and double auctions. Our dynamics has a strong component of inertia but with a small probability, bids are modified in the direction of ex-post regrets. We apply stochastic stability to identify essentially a unique bid that will be used by each type in the long run. In the first-price auction, bidding half of one...

Competitive bidding is a relatively new strategy for setting rates and choosing providers for public medical care programs. In this article, the experience in competitive bidding by home health care providers and homemaker agencies in the National Long-Term Care Channeling Demonstration is described. Particular attention is paid to contrasting approaches that select a single winning bidder with...

Grid computing is a new technology which involves efforts to create a huge source of processing power by connecting computational resources throughout the world. The key issue of such environments is their resource allocation and the appropriate job scheduling strategy. Several approaches to scheduling in these environments have been proposed to date. Market driven scheduling as a decentralized...

This paper addresses three concerns with ascending price Combinatorial Clock Auctions (CCAs); price guidance toward efficiency relevant packages, computational burden, and susceptibility to collusive bidding. We propose a descending price Combinatorial Clock Auction (DCCA) with a newly devised pricing strategy to alleviate all of these concerns. Mimicking bidding behavior of human subjects foun...