A Market-Based Optimization Algorithm for Distributed Systems Export

@article{citeulike:3207627, abstract = {In this paper, a market-based decomposition method for decomposable linear systems is developed. The solution process iterates between a master problem that solves the market-matching problem, and subproblems that solve the agents' bundle-determination problems. Starting from any initial price and feasible allocation, system optimality can be achieved under a dynamic market-trading algorithm in a finite number of trades. The final market-clearing prices are discovered by this market trading and an efficient allocation is achieved by direct, wealth-improving resource exchanges among self-interested agents. Certain types of strategic behavior by the agents and a dealer in the marketplace are studied as well. Our proposed market mechanism addresses price dynamics, incentive issues, and economic transactions of real-world, distributed decision-making situations more realistically than traditional decomposition approaches. In addition, it can be operated in both synchronous and asynchronous environments. We provide a market-based paradigm for decentralized problem solving and information processing that can be easily implemented to support real-time optimization of distributed systems. 10.1287/mnsc.1060.0690}, author = {Guo, Zhiling and Koehler, Gary J. and Whinston, Andrew B.}, citeulike-article-id = {3207627}, citeulike-linkout-0 = {http://dx.doi.org/10.1287/mnsc.1060.0690}, citeulike-linkout-1 = {http://mansci.journal.informs.org/cgi/content/abstract/53/8/1345}, day = {1}, doi = {10.1287/mnsc.1060.0690}, journal = {MANAGEMENT SCIENCE}, keywords = {algorithm, gateway, management, market-based}, month = {August}, number = {8}, pages = {1345--1358}, posted-at = {2008-09-09 06:19:44}, priority = {0}, title = {A Market-Based Optimization Algorithm for Distributed Systems}, url = {http://dx.doi.org/10.1287/mnsc.1060.0690}, volume = {53}, year = {2007} }

TY - JOUR ID - citeulike:3207627 L3 - citeulike-article-id:3207627 N2 - In this paper, a market-based decomposition method for decomposable linear systems is developed. The solution process iterates between a master problem that solves the market-matching problem, and subproblems that solve the agents' bundle-determination problems. Starting from any initial price and feasible allocation, system optimality can be achieved under a dynamic market-trading algorithm in a finite number of trades. The final market-clearing prices are discovered by this market trading and an efficient allocation is achieved by direct, wealth-improving resource exchanges among self-interested agents. Certain types of strategic behavior by the agents and a dealer in the marketplace are studied as well. Our proposed market mechanism addresses price dynamics, incentive issues, and economic transactions of real-world, distributed decision-making situations more realistically than traditional decomposition approaches. In addition, it can be operated in both synchronous and asynchronous environments. We provide a market-based paradigm for decentralized problem solving and information processing that can be easily implemented to support real-time optimization of distributed systems. 10.1287/mnsc.1060.0690 IS - 8 JF - MANAGEMENT SCIENCE EP - 1358 TI - A Market-Based Optimization Algorithm for Distributed Systems VL - 53 SP - 1345 KW - algorithm KW - gateway KW - management KW - market-based AU - Guo, Zhiling AU - Koehler, Gary AU - Whinston, Andrew PY - 2007/08/01/ UR - http://dx.doi.org/10.1287/mnsc.1060.0690 ER -