A Graph-Based Model for Combinatorial Auctions

In this paper, we propose a model for bidding in combinatorial auctions and an allocation algorithm for the proposed model. Both are integrated into an application enabling expressive and concise bids and the computation of the winner determination, i.e., optimal allocation. Combinatorial auctions are a special and more expressive format for organizing auctions based on complex user preferences, motivated by the limitations of the traditional, single-item valuations. In practice, often items would be valued in conjunction with others, in pairs, groups; based on their quantity, and other possible dependencies. Such valuations are declared in our application based on LISP functions, labeling edges of a special flow graph. The allocation algorithm scans these valuations to guess the best possible allocation with partial information.