PI-1545: Multi-Bid Auctions for Bandwidth Allocation in
Communication Networks
Patrick Maillé, BrunoTuffin
http://www.irisa.fr/bibli/publi/pi/2003/1545/1545.html
27 pages - juillet 2003

Abstract
In this paper, we design a bandwidth pricing mechanism that solves
congestion problems in communication networks. The scheme is based on
second-price auctions, which are known to be incentive compatible when a
single indivisible item is to be sold (users have no interest to lie
about the price they are willing to pay for the resource) and to lead to
an efficient allocation of resources in the sense that it maximizes
social welfare. We prove these properties when an infinitely divisible
resource (bandwidth on a communication link) is to be shared among users
who are allowed to submit several bids when they want to establish a
connection. Our scheme is highly related to the Progressive Second Price
Auction of Lazar and Semret where players bid sequentially until an
(optimal) equilibrium is reached. While keeping their incentive
compatibility and efficiency properties, our scheme presents the
advantage that the multi-bid is submitted once only, saving a lot of
signalization overhead.

Résumé
Dans ce papier, nous proposons un mécanisme de tarification de la bande
passante qui résoud les problèmes de congestion dans les réseaux de
communication. Le mécanisme repose sur le principe des enchères au
second prix, dont les propriétés en termes d'incitation sont connues
lorsqu'un bien unique est mis en vente (les participants à l'enchère
n'ont pas d'intérêt à mentir sur la valeur qu'ils accordent au bien), et
qui conduit à une allocation efficace au sens du surplus collectif. Nous
montrons que ces propriétés sont encore valables dans le cas où une
ressource infiniment divisible (bande passante sur un lien de
communication) doit être partagée entre des utilisateurs qui peuvent
soumettre plusieurs enchères lorsqu'ils souhaitent établir une
connexion. Notre mécanisme est fortement lié au mécanisme des enchères
progressives au second prix de Lazar et Semret, où les utilisateurs
enchérissent séquentiellement jusqu'à ce qu'un équilibre (efficace) soit
atteint. Le mécanisme proposé ici, tout en conservant les propriétés
d'incitation et d'efficacité, permet à chaque utilisateur de ne
soumettre son enchère multiple une seule fois, ce qui correspond à une
économie de trafic de signalisation.

Keywords: Telecommunications, Control theory, Pricing

Mots clefs: Télécommunications, Contrôle, Tarification

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