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Combinatorial auctions, where bidders are allowed to submit bids for bundles of items, are preferred to single-item auctions when bidders have complementarities and substitutabilities among items and therefore achieve better social efficiency. A large unexplored area of research is the design of bidding strategies. In this paper, we propose a new adaptive bidding strategy for combinatorial auctions-based resource allocation. The bidder adopting this strategy can adjust his profit margin constantly, and thus perceive and respond to the market in a timely way. Experiment results show that the adaptive strategy performs fairly well when compared to an intelligent strategy, which is artificially generated according to prior knowledge of the market.

An adaptive bidding strategy for combinatorial auctions-based resource allocation in dynamic markets