Study On The Bidding Strategy Of Combinatorial Auctions Considering The Bidders' Regret

Auctions are important market mechanisms with a long history.As the initial study of auction theory focused on standard auction and single item auction,later it has extended to multi-item auction.Combinatorial auction is a type of multi-item auction,which is widely used in the allocation of spectrum rights,airport take-off and landing time slots and so on.Items in combinatorial auction may be regard complementary to each other,and participants are allowed to bid on bundles of multiple heterogeneous items,which plays a significant role in the efficiency of resource allocation.Traditional auction is conducted on the basis of neutral assumption of the bidders.However,researchers find that the bidders will be overbidding departure from the traditional risk neutral Nash equilibrium conclusion,and point out that this is mainly caused by the anticipated loser regret.The loser regret will affect bidders' decision.The previous study on the bidding strategy of considering the bidders' regret focused on single item auction.Combinatorial auction differs from single item auction,in which items may be regard complementary to each other.Bidders' regret in combinatorial auction is connected with complementarity.Study on the bidding strategy of considering the bidders' regret in combinatorial auction is necessary.This study introduced bidders' regret to combinatorial auction,constructed the combinatorial auction model,and solved the bidding strategy on the basis of considering the bidders' regret in two items and two types of bidders' auction.The followings are the main work of this paper.(1)Constructed the regret psychological behavior description model in combinatorial auction.After learning related research achievements of single item auction,according to the characteristics of combinatorial auction,this paper proposes the regret psychological behavior description model in combinatorial auction.(2)Constructed the auction model on the basis of considering the bidders' regret in first-price combinatorial auction.This paper proposes a method to integrate the bidders'regret into the bidders' expected utility function.Constructed two items and two types of bidders' auction model,and calculated the expression of type ? bidders' bidding strategy.(3)Analyzed the influence of model parameters on the bidding strategy.Based on the combinatorial models,aim at three factors which may influence the bidders' bidding strategy:number of bidders,complementarity utility and regret parameters,carried on numerical experiment,then clarified the properties of the optimal bidding strategy.(4)Study of the potential application.Use the auction model constructed in this paper,aim at the real auction problems of allocating wireless access spectrum rights,using the telecommunications authority in H area as an example,and get the practical significance of this essay.In this paper,the bidders' regret psychological behavior description model is constructed firstly.Then constructed the first-price combinatorial auctions and solved the bidding strategy.By the end of this paper,the main contributions and limitations,and the needing work for further research are summarized.