Walrasian Pricing for Combinatorial Markets with Compact-Bidding Languages: An Application to Truckload Transportation

Published Online:https://doi.org/10.1287/isre.2023.0676

References

  • Adomavicius G, Gupta A (2005) Toward comprehensive real-time bidder support in iterative combinatorial auctions. Inform. Systems Res. 16(2):169–185.LinkGoogle Scholar
  • Adomavicius G, Gupta A, Yang M (2022) Bidder support in multi-item multi-unit continuous combinatorial auctions: A unifying theoretical framework. Inform. Systems Res. 33(4):1174–1195.LinkGoogle Scholar
  • Ausubel LM, Baranov O (2020) Core-selecting auctions with incomplete information. Internat. J. Game Theory 49(1):251–273.CrossrefGoogle Scholar
  • Ausubel LM, Milgrom P (2006) The lovely but lonely Vickrey auction. Combinatorial Auctions 17:22–26. Google Scholar
  • Ball MO, Berardino F, Hansen M (2018) The use of auctions for allocating airport access rights. Transportation Res. Part A Policy Practice 114:186–202.CrossrefGoogle Scholar
  • Bedard NC, Goeree JK, Louis P, Zhang J (2020) The favored but flawed simultaneous multiple-round auction. Working Paper Series 2020/03, Economics Discipline Group, UTS Business School, University of Technology, Sydney, Australia.Google Scholar
  • Ben-David A, Nisan N, Pinkas B (2008) FairplayMP: A system for secure multi-party computation. Proc. 15th ACM Conf. Comput. Comm. Security (Association for Computing Machinery, New York), 257–266.Google Scholar
  • Bichler M (2018) Market Design: A Linear Programming Approach to Auctions and Matching (Cambridge University Press, Cambridge, UK).Google Scholar
  • Bichler M, Goeree JK (2017) Handbook of Spectrum Auction Design (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Bichler M, Fux V, Goeree J (2018) A matter of equality: Linear pricing in combinatorial exchanges. Inform. Systems Res. 29(4):1024–1043.LinkGoogle Scholar
  • Bichler M, Hao Z, Adomavicius G (2017) Coalition-based pricing in ascending combinatorial auctions. Inform. Systems Res. 28(1):159–179.LinkGoogle Scholar
  • Bichler M, Shabalin P, Pikovsky A (2009) A computational analysis of linear price iterative combinatorial auction formats. Inform. Systems Res. 20(1):33–59.LinkGoogle Scholar
  • Bichler M, Shabalin P, Wolf J (2013) Do core-selecting combinatorial clock auctions always lead to high efficiency? An experimental analysis of spectrum auction designs. Experiment. Econom. 16(4):511–545.CrossrefGoogle Scholar
  • Bichler M, Schneider S, Guler K, Sayal M (2011) Compact bidding languages and supplier selection for markets with economies of scale and scope. Eur. J. Oper. Res. 214(1):67–77.CrossrefGoogle Scholar
  • Bikhchandani S, Mamer JW (1997) Competitive equilibrium in an exchange economy with indivisibilities. J. Econom. Theory 74(2):385–413.CrossrefGoogle Scholar
  • Boland N, Hewitt M, Marshall L, Savelsbergh M (2017) The continuous-time service network design problem. Oper. Res. 65(5):1303–1321.LinkGoogle Scholar
  • Boughaci D, Benhamou B, Drias H (2010) Local search methods for the optimal winner determination problem in combinatorial auctions. J. Math. Model. Algorithms 9(2):165–180.CrossrefGoogle Scholar
  • Budish E (2011) The combinatorial assignment problem: Approximate competitive equilibrium from equal incomes. J. Political Econom. 119(6):1061–1103.CrossrefGoogle Scholar
  • Bünz B, Lubin B, Seuken S (2022) Designing core-selecting payment rules: A computational search approach. Inform. Systems Res. 33(4):1157–1173.LinkGoogle Scholar
  • Bykowsky MM, Cull RJ, Ledyard JO (2000) Mutually destructive bidding: The FCC auction design problem. J. Regulatory Econom. 17(3):205–228.CrossrefGoogle Scholar
  • Caplice C (2007) Electronic markets for truckload transportation. Production Oper. Management 16(4):423–436.CrossrefGoogle Scholar
  • Caplice C (2021) Reducing uncertainty in freight transportation procurement. J. Supply Chain Management 4(2):137–155.Google Scholar
  • Caplice C, Sheffi Y (2006) Combinatorial auctions for truckload transportation. Combinatorial Auctions 21:539–572.Google Scholar
  • Cavallo R (2006) Optimal decision-making with minimal waste: Strategyproof redistribution of VCG payments. Proc. Fifth Internat. Joint Conf. Autonomous Agents Multiagent Systems (Association for Computing Machinery, New York), 882–889.Google Scholar
  • Chen H (2016) Combinatorial clock-proxy exchange for carrier collaboration in less than truck load transportation. Transportation Res. Part E Logist. Transportation Rev. 91:152–172.CrossrefGoogle Scholar
  • Chen RLY, AhmadBeygi S, Cohn A, Beil DR, Sinha A (2009) Solving truckload procurement auctions over an exponential number of bundles. Transportation Sci. 43(4):493–510.LinkGoogle Scholar
  • Cheng M, Xu SX, Huang GQ (2016) Truthful multi-unit multi-attribute double auctions for perishable supply chain trading. Transportation Res. Part E Logist. Transportation Rev. 93:21–37.CrossrefGoogle Scholar
  • Clarke EH (1971) Multipart pricing of public goods. Public Choice 11(1):17–33.CrossrefGoogle Scholar
  • Cramton P, Shoham Y, Steinberg R (2006) Combinatorial Auctions (MIT Press, Cambridge, MA).Google Scholar
  • Day R (2013) The division of surplus in efficient combinatorial exchanges. Preprint, submitted February 26, https://dx.doi.org/10.2139/ssrn.2207067.Google Scholar
  • Day RW, Cramton P (2012) Quadratic core-selecting payment rules for combinatorial auctions. Oper. Res. 60(3):588–603.LinkGoogle Scholar
  • Day RW, Raghavan S (2007) Fair payments for efficient allocations in public sector combinatorial auctions. Management Sci. 53(9):1389–1406.LinkGoogle Scholar
  • Emadikhiav M, Bhattacharjee S, Day R, Bergman D (2024) A decision support framework for integrated lane identification and long-term backhaul collaboration using spatial analytics and optimization. Decision Support Systems 180:114186.CrossrefGoogle Scholar
  • Ergun O, Kuyzu G, Savelsbergh M (2007a) Reducing truckload transportation costs through collaboration. Transportation Sci. 41(2):206–221.LinkGoogle Scholar
  • Ergun Ö, Kuyzu G, Savelsbergh M (2007b) Shipper collaboration. Comput. Oper. Res. 34(6):1551–1560.CrossrefGoogle Scholar
  • Evans D, Kolesnikov V, Rosulek M (2018) A pragmatic introduction to secure multi-party computation. Foundations Trends Privacy Security 2(2–3):70–246.CrossrefGoogle Scholar
  • Fernández E, Fontana D, Speranza MG (2016) On the collaboration uncapacitated arc routing problem. Comput. Oper. Res. 67:120–131.CrossrefGoogle Scholar
  • Garey MR, Johnson DS (2002) Computers and Intractability, vol. 29 (W. H. Freeman, New York).Google Scholar
  • Goetzendorff A, Bichler M, Shabalin P, Day RW (2015) Compact bid languages and core pricing in large multi-item auctions. Management Sci. 61(7):1684–1703.LinkGoogle Scholar
  • Groves T (1973) Incentives in teams. Econometrica 41(4):617–631.CrossrefGoogle Scholar
  • Günlük O, Ladányi L, De Vries S (2005) A branch-and-price algorithm and new test problems for spectrum auctions. Management Sci. 51(3):391–406.LinkGoogle Scholar
  • Gurobi Optimization, LLC (2023) Gurobi Optimizer Gurobi 12.0. Accessed December 1, 2024, https://www.gurobi.com.Google Scholar
  • Harris A, Nguyen TMA (2022) Long-term relationships and the spot market: Evidence from US trucking. Working paper, Department of Economics, Massachusetts Institute of Technology, Boston.Google Scholar
  • Harris A, Nguyen TMA (2025) Long-term relationships in the US truckload freight industry. Amer. Econom. J. Microeconom. Forthcoming.Google Scholar
  • Hoffman K, Menon D (2010) A practical combinatorial clock exchange for spectrum licenses. Decision Anal. 7(1):58–77.LinkGoogle Scholar
  • Huang GQ, Xu SX (2013) Truthful multi-unit transportation procurement auctions for logistics e-marketplaces. Transportation Res. Part B Methodological 47:127–148.CrossrefGoogle Scholar
  • Kittsteiner T, Ott M, Steinberg R (2022) Competing combinatorial auctions. Inform. Systems Res. 33(4):1130–1137.LinkGoogle Scholar
  • Kuyzu G (2017) Lane covering with partner bounds in collaborative truckload transportation procurement. Comput. Oper. Res. 77:32–43.CrossrefGoogle Scholar
  • Lahaie S, Lubin B (2019) Adaptive-price combinatorial auctions. EC’19 Proc. 2019 ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 749–750.Google Scholar
  • Liu R, Jiang Z, Fung RY, Chen F, Liu X (2010) Two-phase heuristic algorithms for full truckloads multi-depot capacitated vehicle routing problem in carrier collaboration. Comput. Oper. Res. 37(5):950–959.CrossrefGoogle Scholar
  • Lubin B, Juda AI, Cavallo R, Lahaie S, Shneidman J, Parkes DC (2008) ICE: An expressive iterative combinatorial exchange. J. Artificial Intelligence Res. 33:33–77.CrossrefGoogle Scholar
  • Milgrom PR (2004) Putting Auction Theory to Work (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Milgrom P, Watt M (2022) Walrasian mechanisms for non-convex economies and the bound-form first welfare theorem. Proc. ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 300.Google Scholar
  • Nguyen T, Vohra R (2022) (Near) substitute preferences and equilibria with indivisibilities. Technical Report No. 22-010, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, Philadelphia.Google Scholar
  • Özener OÖ, Ergun Ö, Savelsbergh M (2011) Lane-exchange mechanisms for truckload carrier collaboration. Transportation Sci. 45(1):1–17.LinkGoogle Scholar
  • Parkes DC (2001) Iterative Combinatorial Auctions: Achieving Economic and Computational Efficiency (University of Pennsylvania, Philadelphia).Google Scholar
  • Parkes DC, Kalagnanam J, Eso M (2001) Achieving budget-balance with Vickrey-based payment schemes in exchanges. Proc. 17th Internat. Joint Conf. Artificial Intelligence—Volume 2 (Morgan Kaufmann Publishers Inc., San Francisco), 1161–1168.Google Scholar
  • Ray A, Ventresca M, Kannan K (2021) A graph-based ant algorithm for the winner determination problem in combinatorial auctions. Inform. Systems Res. 32(4):1099–1114.LinkGoogle Scholar
  • Sandholm T (2002) Algorithm for optimal winner determination in combinatorial auctions. Artificial Intelligence 135(1–2):1–54.CrossrefGoogle Scholar
  • Sandholm T (2013) Very-large-scale generalized combinatorial multi-attribute auctions. Vulkan N, Roth AE, Neeman Z, eds. The Handbook of Market Design (Oxford University Press, Oxford, UK), 379–412.CrossrefGoogle Scholar
  • Schneider M, Day R, Garfinkel R (2015) Risk aversion and loss aversion in core-selecting auctions. Decision Support Systems 79:161–170.CrossrefGoogle Scholar
  • Scott A (2019) Concurrent business and buyer–supplier behavior in B2B auctions: Evidence from truckload transportation. Production Oper. Management 28(10):2609–2628.CrossrefGoogle Scholar
  • Scott A, Parker C, Craighead CW (2017) Service refusals in supply chains: Drivers and deterrents of freight rejection. Transportation Sci. 51(4):1086–1101.LinkGoogle Scholar
  • Sheffi Y (2004) Combinatorial auctions in the procurement of transportation services. Interfaces 34(4):245–252.LinkGoogle Scholar
  • Vickrey W (1961) Counterspeculation, auctions, and competitive sealed tenders. J. Finance 16(1):8–37.CrossrefGoogle Scholar
  • Wang J, Shen Y, Wang B (2021) Sealed-bid auction scheme based on blockchain and secure multi-party computation. 2021 IEEE 5th Inform. Tech. Networking Electronic Automation Control Conf. (ITNEC), vol. 5 (IEEE, Piscataway, NJ), 407–412.Google Scholar
  • Wu Q, Hao JK (2015) Solving the winner determination problem via a weighted maximum clique heuristic. Expert Systems Appl. 42(1):355–365.CrossrefGoogle Scholar
  • Xu SX, Huang GQ, Cheng M (2017) Truthful, budget-balanced bundle double auctions for carrier collaboration. Transportation Sci. 51(4):1365–1386.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.