Balanced trade reduction for dual-role exchange markets
Balanced trade reduction for dual-role exchange markets
We consider dual-role exchange markets, where traders can offer to both buy and sell the same commodity in the exchange but, if they transact, they can only be either a buyer or a seller, which is determined by the market mechanism. To design desirable mechanisms for such exchanges, we show that existing solutions may not be incentive compatible, and more importantly, cause the market maker to suffer a significant deficit. Hence, to combat this problem, following McAfee's trade reduction approach, we propose a new trade reduction mechanism, called balanced trade reduction, that is incentive compatible and also provides flexible trade-offs between efficiency and deficit
1064-1070
Zhao, Dengji
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Ramchurn, Sarvapali D.
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Gerding, Enrico H.
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Jennings, Nicholas R.
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January 2015
Zhao, Dengji
731b17f8-df94-49cb-b45d-8edf05c59edf
Ramchurn, Sarvapali D.
1d62ae2a-a498-444e-912d-a6082d3aaea3
Gerding, Enrico H.
d9e92ee5-1a8c-4467-a689-8363e7743362
Jennings, Nicholas R.
ab3d94cc-247c-4545-9d1e-65873d6cdb30
Zhao, Dengji, Ramchurn, Sarvapali D., Gerding, Enrico H. and Jennings, Nicholas R.
(2015)
Balanced trade reduction for dual-role exchange markets.
The Twenty-Ninth AAAI Conference on Artificial Intelligence, Austin, United States.
25 - 30 Jan 2015.
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
We consider dual-role exchange markets, where traders can offer to both buy and sell the same commodity in the exchange but, if they transact, they can only be either a buyer or a seller, which is determined by the market mechanism. To design desirable mechanisms for such exchanges, we show that existing solutions may not be incentive compatible, and more importantly, cause the market maker to suffer a significant deficit. Hence, to combat this problem, following McAfee's trade reduction approach, we propose a new trade reduction mechanism, called balanced trade reduction, that is incentive compatible and also provides flexible trade-offs between efficiency and deficit
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AAAI15-Zhao.pdf
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Published date: January 2015
Venue - Dates:
The Twenty-Ninth AAAI Conference on Artificial Intelligence, Austin, United States, 2015-01-25 - 2015-01-30
Organisations:
Agents, Interactions & Complexity
Identifiers
Local EPrints ID: 372050
URI: http://eprints.soton.ac.uk/id/eprint/372050
PURE UUID: 88ccd4d8-2344-4e15-a402-420b72c56d7c
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Date deposited: 24 Nov 2014 14:21
Last modified: 15 Mar 2024 03:23
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Contributors
Author:
Dengji Zhao
Author:
Sarvapali D. Ramchurn
Author:
Enrico H. Gerding
Author:
Nicholas R. Jennings
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