Fair resource allocation in distributed combinatorial auctioning systems

Abstract

Combinatorial Auctions are auctions where bidders can place bids on combinations of items, called packages or bundles, rather than just on individual items. In this paper we extend this concept to distributed system, by proposing a Distributed Combinatorial Auctioning System consisting of auctioneers and bidders who communicate by message-passing. We also propose a fair division algorithm that is based on our DCAS concept and model. Our model consist of auctioneers that are distributed in the system each having local bidders. Auctioneers collect local bids for the bundles. One of the auctioneers acts obtains all the bids from other auctioneers, and performs the computations necessary for the combinatorial auction. We also briefly discuss how basic and extended fairness are implemented in resource allocation by our algorithm. © 2009 Springer.