Truthful multi-unit double auctions with quantity discount

Abstract

For the market allocation efficiency of existing multi-unit double auction mechanism is low when the number of seller is small, which is not conducive to maximize the social welfare and utilities of buyers and sellers. In order to enable more agents to participate in the final allocation and improve social welfare, the multi-unit double auctions with quantity discount (MDAQD) is designed. The model is established by integer programming. The MDAQA mechanism is individual rational, budget balance, allocative effective and incentive compatibility. By designing the numerical examples and comparing the results without considering the quantity discounts, the allocation efficiency and social welfare of the new mechanism are significantly improved.