A new approach to detecting shill bids in e-auctions

Authors:
Tokuro Matsuo;Takayuki Ito;Toramatsu Shintani
Affiliations:
Department of Informatics, Faculty of Engineering, Yamagata University, 4-3-16, Jonan, Yonezawa, Yamagata, 992-8510, Japan.;Department of Computer Science and Engineering, Graduate School of Engineering, Nagoya Institute of Technology, Gokiso, Showa, Nagoya, Aichi, 466-8555, Japan.;Department of Computer Science and Engineering, Graduate School of Engineering, Nagoya Institute of Technology, Gokiso, Showa, Nagoya, Aichi, 466-8555, Japan
Venue:
International Journal of Intelligent Information and Database Systems
Year:
2007

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Abstract

False-name bids and shill bids pose an emerging problem for auctions. To solve the problem, we propose a new method for finding shill bid in order to avoid them. Our algorithm can judge whether there might be a shill bid from the results of the bidding procedure. Further, in this paper, we propose an improved method, which can dramatically reduce the computational cost. The results demonstrate that the proposed method successfully reduces the computational cost needed to find shill bids. The contribution of our work is in the integration of the theory and detecting fraud in combinatorial auctions.