2017/12/19 by Erel Segal-Halevi, Avinatan Hassidim, Segal-Halevi, Erel +3
Computer Science · #Computer Science and Game Theory (cs.GT) #FOS: Computer and information sciences #cs.GT
paper · pdf · doi:10.48550/arxiv.1712.06848
Accepted to the AAAI2018 conference
arxiv created 2017/12/19 · arxiv updated 2017/12/20
In a seminal paper, McAfee (1992) presented a truthful mechanism for double auctions, attaining asymptotically-optimal gain-from-trade without any prior information on the valuations of the traders. McAfee's mechanism handles single-parametric agents, allowing each seller to sell a single unit and each buyer to buy a single unit. This paper presents a double-auction mechanism that handles multi-parametric agents and allows multiple units per trader, as long as the valuation functions of all traders have decreasing marginal returns. The mechanism is prior-free, ex-post individually-rational, dominant-strategy truthful and strongly-budget-balanced. Its gain-from-trade approaches the optimum when the market size is sufficiently large.