A Graph-Based Ant Algorithm for the Winner Determination Problem in Combinatorial Auctions
Authors: Ray, Abhishek; Ventresca, Mario; Kannan, Karthik
Journal: Information Systems Research (2021)
<jats:p> Iterative combinatorial auctions are known to resolve bidder preference elicitation problems. However, winner determination is a known key bottleneck that has prevented widespread adoption of such auctions, and adding a time-bound to winner determination further complicates the mechanism. As a result, heuristic-based methods have enjoyed an increase in applicability. We add to the growing body of work in heuristic-based winner determination by proposing an ant colony metaheuristic–based anytime algorithm that produces optimal or near-optimal winner determination results within specified time. Our proposed algorithm resolves the speed versus accuracy problem and displays superior performance compared with 20 past state-of-the-art heuristics and two exact algorithms, for 94 open test auction instances that display a wide variety in bid-bundle composition. Furthermore, we contribute to the literature in two predominant ways: first, we represent the winner determination problem as one of finding the maximum weighted path on a directed cyclic graph; second, we improve upon existing ant colony heuristic–based exploration methods by implementing randomized pheromone updating and…