Combinatorial Auctions and Knapsack Problems - An Analysis of Optimization Methods

With the rapid diffusion of the internet, different kinds of market designs for e-commerce have emerged. Among these, combinatorial auctions (CAs) have gained increased interest as they permit bidders to express their valuations more easily. For applying a CA in real world scenarios, fast algorithms are needed to compute the optimal allocation of the offered goods. Although much research has dealt with this so-called Winner Determination Problem (WDP), only recently has its equivalence to the well-studied multi-dimensional knapsack problem (MDKP) been noticed. Therefore, there is a lack of research which compares approaches for solving MDKP and WDP problems. With this work, the author, Jella Pfeiffer, provides the missing integrative step, aiming at a more intense understanding and a mutual inspiration of both research areas. She examines structural differences of test instances from both domains, compares the performance of different algorithms, and alludes to a successful search behavior of non-exact but fast algorithms. The book addresses readers interested in electronic market design and algorithms solving complex combinatorial optimization problems.

Dipl.-Wirtschaftsinformatikerin, studied Computer Science and Business Administration at the University of Mannheim. Currently, she works as PhD student at the University of Mainz for the Department of Information Systems and Business Administration.