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Algorithm for Optimal Winner Determination in Combinatorial Auctionsby: Tuomas Sandholm
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AbstractCombinatorial auctions, that is, auctions where bidders can bid on combinations of items, tend to lead to more efficient allocations than traditional auction mechanisms in multi-item auctions where the agents' valuations of the items are not additive. However, determining the winners so as to maximize revenue is AfP-complete. First, we analyze existing approaches for tackling this problem: exhaustive enumeration, dynamic programming, and restricting the allowable combinations.
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