Journal Article

On the rapid convergence of a class of decentralized decision processes: quantized progressive second-price auctions

Peng Jia, Clare W. Qu and Peter E. Caines

in IMA Journal of Mathematical Control and Information

Published on behalf of Institute of Mathematics and its Applications

Volume 26, issue 3, pages 325-355
Published in print September 2009 | ISSN: 0265-0754
Published online August 2009 | e-ISSN: 1471-6887 | DOI: http://dx.doi.org/10.1093/imamci/dnp016
On the rapid convergence of a class of decentralized decision processes: quantized progressive second-price auctions

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A progressive second price (PSP) auction mechanism was proposed in Semret et al. (2000, IEEE J. Select. Areas Commun., 18, 2499–2513) for network bandwidth allocation. In this paper, a quantized version of this mechanism (Q-PSP) is analysed where the agents have similar demand functions and submit bids synchronously. It is shown that the nonlinear dynamics induced by this mechanism are such that the prices bid by the various agents and the quantities allocated to these agents converge in at most five iterations or oscillate indefinitely; this behaviour is not only independent of the number of agents involved but also independent of the number of quantization levels.

Keywords: nonlinear dynamics; multiagent systems; progressive second price auctions; markets

Journal Article.  0 words. 

Subjects: Mathematics

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