Title: Analysis of Two Classes of Decentralized Decision Systems: Quantized Single and Double-Sided Auctions in Competitive Markets (½ hour)
Abstract: In this talk two quantized dynamical auction systems are introduced to solve resource allocation problem in competitive markets. Toy models for these proposed decentralized processes are similar to those for market models in such areas as electricity systems [1,7,8,10,11] and communication networks [5,9,3,6,4]. First, we present quantized dynamical auctions for supply markets (that is to say, markets where only sellers are assumed to have market power) which allocate a divisible resource among arbitrary populations of suppliers. This case is symmetric to that where quantized dynamical auctions are considered for demand markets. Rapid convergence and approximate social optima are achieved in both cases [2]. Second, we describe the extension of these quantized mechanisms to the double auction case where competition among both sellers and buyers is considered. Double auctions are formulated in this work as two single-sided quantized auctions which depend upon joint market quantities and price constraints. Finally, the extended mechanism is shown to have similar rapid convergence and market efficiency (i.e., maximum of social welfare) properties to single-sided dynamical auctions.
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