HW 1 question 4 section 1

Summary:

Refining the definition of a combinatoric auction

HW 1 question 4 section 1

eldarsehayek 06 Apr 2018 12:39

Is an auction where there are 2 items to allocate to bidders such that a bidder can receive only 1 item is considered a combinatoric one, even if bidders have value for receiving both items?
To my understanding it can be, e.g. a unit-price demand auction case where auction designer assumes builders are interested in one item only while in fact they may wish for more than one.

Re: HW 1 question 4 section 1

KineretS 06 Apr 2018 21:17

A combinatorial auction is an auction in which there is a set of n bidders and a set M of m items; each bidder i has a valuation function v_i:2^m \to R that gives a value v_i(S) for each bundle S \subset M of items. The allocation rule of the auction must be feasible (e.g., it can't allocate the same item to two different bidders), but there might be many feasible rules, in some of them a bidder might get only one item. I'm not sure that I understand exactly what do you ask or the connection to Q4 in the HW, though.

Last edited on 06 Apr 2018 21:19 by KineretS Show more