Authors:
Pankaj Mishra
1
;
2
;
Ahmed Moustafa
1
and
Fenghui Ren
2
Affiliations:
1
Department of Computer Science, Nagoya Institute of Technology, Gokiso, Naogya, Japan
;
2
School of Computing and Information Technology, University of Wollongong, Wollongong, Australia
Keyword(s):
Economic Networks, Multi-Unit Homogeneous Resource Allocation, Diffusion Mechanism, Procurement Auction Theory.
Abstract:
n this work, we introduce a novel resource allocation mechanism that aims to maximise the social welfare
of the market in procurement auctions. Specifically, we consider a market setting with multiple units of
homogeneous resources. In such settings, buyers submit their resource requests to a limited number of known
providers. This limited number of providers might in turn lead to a provider monopoly in the market and a
scarcity of the resources. To address this problem, we propose a novel information diffusion-based resource
allocation mechanism for resource allocation in procurement auctions. The proposed mechanism focuses on
procuring multiple units of homogeneous resources. In this regard, the proposed mechanism incentivises the
providers to truthfully diffuse the procurement information to their neighbours. This information diffusion
aids the buyers to procure the required amounts of commodities/resources at the minimum possible prices.
In addition, the proposed mechani
sm gives fair chances to the distant providers to fairly participate in the
procurement auction. Further, we prove that the proposed mechanism minimises the procurement costs, with
no deficits, compared to the Vickrey-Clarke-Groves mechanism. Finally, based on the experiments, we show
that the proposed mechanism has comparatively lesser procurement costs.
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