Combinatorial Auctions and Knapsack Problems

  • Authors:
  • Terence Kelly

  • Affiliations:
  • Hewlett-Packard Laboratories

  • Venue:
  • AAMAS '04 Proceedings of the Third International Joint Conference on Autonomous Agents and Multiagent Systems - Volume 3
  • Year:
  • 2004

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Abstract

This note summarizes the connection between winner determination problems (WDPs) in multi-unit combinatorial exchanges and generalized knapsack problems (KPs); see [2] for an extensive treatment. Taxonomies of sealed-bid auction WDPs and of KPs align precisely, i.e., the two classes of problems are identical. The relationship between KPs and WDPs has received remarkably little attention in E-commerce and multi-agent systems literature. However the WDP-KP connection is important because it allows us to leverage a vast body of Operations Research literature for developing and benchmarking WDP solvers. For low-dimensional multi-unit CA WDPs (i.e., few types of goods), extremely simple dynamic-programming algorithms are available whose time and memory requirements are linear (in the pseudo-polynomial sense) in three out of four natural measures of problem size.