Design of Online Double Auction Mechanism for Aging Sensitive Commodity

Xiaolong Ma1,2, Yonghui Dai1, Ziyi Wang1 and Lanjuan Liu1

  1. School of Information Management and Engineering, Shanghai University of Finance and Economics
    Shanghai 200433, China
    lxm2007@sohu.com, dyh822@163.com, zy wang1008@outlook.com, lanjuan2008@sohu.com
  2. School of Business, Huzhou University, Huzhou
    Zhejiang 313000, China
    xiaolongma@hutc.edu.zj.cn

Abstract

Aging sensitive commodities are those who must be sold within a certain period of time or their value will have a decline, in other words, the value is changing over time. In order to maximize the profit of the aging sensitive commodity product operators, both the sellers and buyers should arrive dynamically and leave the market within their time limits, the traditional auction mechanism design method in static environment is not suitable for solving the problem in dynamic environment. This paper presents an online double auction mechanism DAPA (Double Auction Payment Allocation) for aging sensitive commodity under dynamic environment, and then proposes and implements the corresponding allocation and payment algorithm as well. We carry on a theoretical analysis on truthful and establish the simulation experiment to prove that our DAPA is superior in improving transaction success rate and realizing fair price-making between traders than traditional equilibrium matching in static environment.

Key words

Aging sensitive commodity, online mechanism design, double auction payment allocation

Digital Object Identifier (DOI)

https://doi.org/10.2298/CSIS160212016M

Publication information

Volume 13, Issue 2 (June 2016)
Year of Publication: 2016
ISSN: 1820-0214 (Print) 2406-1018 (Online)
Publisher: ComSIS Consortium

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How to cite

Ma, X., Dai, Y., Wang, Z., Liu, L.: Design of Online Double Auction Mechanism for Aging Sensitive Commodity. Computer Science and Information Systems, Vol. 13, No. 2, 579–592. (2016)