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Respond to the question: Question about auction algorithm?

01/07/2020 01:51 AM by deb; Question about auction algorithm

I have one question about the auction algorithm as developed by Bertsekas et al in order to solve assignment problems.

In (very) short, considering a same number of agents and objects, the algorithm consists in two phases, the bidding phase and the assignment one. The algorithm ends when all objects are assigned and agent, which guarantees that the assignment set is optimal.

My question is about the bidding phase, in which each agent puts a bid on its most profitable object. The bid is computed as the difference between the highest profit and the second highest.

I just wonder why the bid is computed like this and not another way. Is it because this is the only way to reach the optimum for the algorithm ? To my knowledge, it is never explained.

Thanks in advance for your kid attention.

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