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Maximal Matching for Double Auction

Identifieur interne : 000999 ( Istex/Corpus ); précédent : 000998; suivant : 000A00

Maximal Matching for Double Auction

Auteurs : Dengji Zhao ; Dongmo Zhang ; Md Khan ; Laurent Perrussel

Source :

RBID : ISTEX:35F48BDB366863B55A7522498C82BC13EEAE0CA2

English descriptors

Abstract

Abstract: We study the problem of mechanism design for a double auction market where multiple buyers and sellers buy and sell a commodity. We design and implement a matching algorithm that maximizes market liquidity, including the number of transactions and buy/sell-volume. We prove that, given the number of matches, the algorithm also maximizes auctioneer’s profit. Based on the CAT Tournament (Trading Agent Competition Market Design) platform, we show with experiments that the new matching method not only increases market liquidity but also significantly improves market share and auctioneer’s profit in the long term, compared with equilibrium matching, the most commonly used matching method.

Url:
DOI: 10.1007/978-3-642-17432-2_52

Links to Exploration step

ISTEX:35F48BDB366863B55A7522498C82BC13EEAE0CA2

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<p>Abstract: We study the problem of mechanism design for a double auction market where multiple buyers and sellers buy and sell a commodity. We design and implement a matching algorithm that maximizes market liquidity, including the number of transactions and buy/sell-volume. We prove that, given the number of matches, the algorithm also maximizes auctioneer’s profit. Based on the CAT Tournament (Trading Agent Competition Market Design) platform, we show with experiments that the new matching method not only increases market liquidity but also significantly improves market share and auctioneer’s profit in the long term, compared with equilibrium matching, the most commonly used matching method.</p>
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<Para>We study the problem of mechanism design for a double auction market where multiple buyers and sellers buy and sell a commodity. We design and implement a matching algorithm that maximizes market liquidity, including the number of transactions and buy/sell-volume. We prove that, given the number of matches, the algorithm also maximizes auctioneer’s profit. Based on the CAT Tournament (Trading Agent Competition Market Design) platform, we show with experiments that the new matching method not only increases market liquidity but also significantly improves market share and auctioneer’s profit in the long term, compared with equilibrium matching, the most commonly used matching method.</Para>
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