Effectiveness of Preference Elicitation in Combinatorial Auctions
Benoît Hudson6
and Tuomas Sandholm6 
| (6) |
Computer Science Department, Carnegie Mellon University, 5000 Forbes Avenue, 15213, PA, Pittsburgh |
Abstract
Combinatorial auctions where agents can bid on bundles of items are desirable because they allow the agents to express complementarity
and substitutability between the items. However, expressing one’s preferences can require bidding on all bundles. Selective
incremental preference elicitation by the auctioneer was recently proposed to address this problem [4], but the idea was not evaluated. In this paper we show, experimentally and theoretically, that automated elicitation provides
a large benefit. In all of the elicitation schemes under study, as the number of items for sale increases, the amount of information
elicited is a vanishing fraction of the information collected in traditional “direct revelation mechanisms” where bidders
reveal all their valuation information. Most of the elicitation schemes also maintain the benefit as the number of agents
increases. We develop more effective elicitation policies for existing query types. We also present a new query type that
takes the incremental nature of elicitation to a new level by allowing agents to give approximate answers that are refined
only on an as-needed basis. In the process, we present methods for evaluating different types of elicitation policies.
This material is based uponwork supported by the National Science Foundation under CAREER Award IRI-9703122, Grant IIS-9800994,
ITR IIS-0081246, and ITR IIS-0121678.
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