Mechanisms for multi-unit auctions

  • Authors:
  • Shahar Dobzinski;Noam Nisan

  • Affiliations:
  • Hebrew University, Jerusalem, Israel;Hebrew University, Jerusalem, Israel

  • Venue:
  • Proceedings of the 8th ACM conference on Electronic commerce
  • Year:
  • 2007

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Abstract

We present an incentive-compatible polynomial-time approximation scheme for multi-unit auctions with general k-minded playervaluations. The mechanism fully optimizes over an appropriately chosen sub-range of possible allocations and then uses VCG payments over this sub-range. We show that obtaining a fully polynomial-time incentive-compatible approximation scheme, at least using VCG payments, is NP-hard. For the case of valuations given by black boxes, we give a polynomial-time incentive-compatible 2-approximation mechanism and show that no better is possible, at least using VCG payments.