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Making difficult auctions easy

Steinberg, Richard ORCID: 0000-0001-9636-472X (2021) Making difficult auctions easy. LSE Business Review (10 May 2021). Blog Entry.

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Abstract

To maximise revenue from an auction, an important question is how to design it. A combinatorial auction is one where bids are allowed not only on individual items, but on combinations of items, called packages, as well. The auctioneer aims to accept the bids that together maximise revenue. This is called the winner determination problem — a mathematical problem. As the number of items in an auction increases, the number of steps required to design the optimal combination increases exponentially, and so does the time required to solve the puzzle. Together with his colleague Frank Kelly, Richard Steinberg developed a combinatorial auction procedure called PAUSE (Progressive Adaptive User Selection Environment) in which the auctioneer never faces the winner determination problem.

Item Type: Online resource (Blog Entry)
Official URL: https://blogs.lse.ac.uk/businessreview/
Additional Information: © 2021 The Author
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 23 Jul 2021 10:12
Last Modified: 29 Aug 2021 23:05
URI: http://eprints.lse.ac.uk/id/eprint/111271

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