Optimal price decision problem for simultaneous multi-article auction and its optimal price searching method by particle swarm optimization

Kazuaki Masuda, Eitaro Aiyoshi

Research output: Contribution to journalArticle

Abstract

We propose a method for solving optimal price decision problems for simultaneous multi-article auctions. An auction problem, originally formulated as a combinatorial problem, determines both every seller's whether or not to sell his/her article and every buyer's which article(s) to buy, so that the total utility of buyers and sellers will be maximized. Due to the duality theory, we transform it equivalently into a dual problem in which Lagrange multipliers are interpreted as articles' transaction price. As the dual problem is a continuous optimization problem with respect to the multipliers (i.e., the transaction prices), we propose a numerical method to solve it by applying heuristic global search methods. In this paper, Particle Swarm Optimization (PSO) is used to solve the dual problem, and experimental results are presented to show the validity of the proposed method.

Original languageEnglish
Pages (from-to)461-467
Number of pages7
JournalIEEJ Transactions on Electronics, Information and Systems
Volume131
Issue number2
DOIs
Publication statusPublished - 2011

Keywords

  • Auction problem
  • Duality theory
  • Lagrange multiplier
  • Particle swarm optimization (PSO)

ASJC Scopus subject areas

  • Electrical and Electronic Engineering

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