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Combinatorial auctions as frustrated lattice gases | | Tobias Galla
; Michele Leone
; Matteo Marsili
; Mauro Sellitto
; Martin Weigt
; Riccardo Zecchina
; | | Date: |
25 May 2006 | | Subject: | Statistical Mechanics | | Abstract: | Combinatorial auctions are formulated as frustrated lattice gas models on sparse random graphs, allowing the determination of theoptimal revenue by methods of statistical physics. Transitions between computationally easy and hard regimes are found and interpreted in terms of the geometric structure of the space of solutions. We introduce an iterative algorithm to solve intermediate and large instances efficiently, and discuss competing states of optimal revenue and maximal number of satisfied bidders. The algorithm can be generalized to the hard phase where current linear programming methods are expected to be inappropriate, or to more sophisticated auction protocols. | | Source: | arXiv, cond-mat/0605623 | | Services: | Forum | Review | PDF | Favorites | |
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