A Mechanism for Multi-unit Multi-item Commodity Allocation in Economic Networks

Pankaj Mishra, Pankaj Mishra, Ahmed Moustafa, Fenghui Ren

2022

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 mechanism 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.

Paper Citation

in Harvard Style

Mishra P., Moustafa A. and Ren F. (2022). A Mechanism for Multi-unit Multi-item Commodity Allocation in Economic Networks. In Proceedings of the 14th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART, ISBN 978-989-758-547-0, pages 265-273. DOI: 10.5220/0010844400003116

in Bibtex Style

@conference{icaart22,
author={Pankaj Mishra and Ahmed Moustafa and Fenghui Ren},
title={A Mechanism for Multi-unit Multi-item Commodity Allocation in Economic Networks},
booktitle={Proceedings of the 14th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART,},
year={2022},
pages={265-273},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010844400003116},
isbn={978-989-758-547-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 14th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART,
TI - A Mechanism for Multi-unit Multi-item Commodity Allocation in Economic Networks
SN - 978-989-758-547-0
AU - Mishra P.
AU - Moustafa A.
AU - Ren F.
PY - 2022
SP - 265
EP - 273
DO - 10.5220/0010844400003116