| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 385375 | Expert Systems with Applications | 2011 | 8 Pages |
This paper proposes a new approach to design optimal double auction mechanism with multi-objectives. In the optimal double auction mechanism, optimality is represented as multi-objectives to maximize the expected total revenue of sellers and buyers respectively at the same time. We give representation of allocation rules and payment rules of the optimal double auction mechanism that satisfies incentive compatibility, individual rationality, market clearing, and budget-balanced restrictions. Finally, we present a numerical example to demonstrate the function of the developed optimal double auction mechanism and its efficiency.
► We propose a new approach to design optimal double auction mechanism with multi-objectives. ► We propose to achieve the optimality of auction by maximizing expected total revenue of sellers and buyers respectively at the same time. ► We present the allocation rules and payment rules of the optimal auction mechanism. ► We demonstrate the function of the developed optimal double auction mechanism and its efficiency with a numerical example.
