Open AccessThe Cross-Entropy Method for the Winner Determination Problem in Combinatorial Auctions
Author(s) -
Hanmi Lin,
Yongqiang Chen,
Changping Liu,
Jian Xie,
NI Bai-xiu
Publication year - 2020
Publication title -
mathematical problems in engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.262
H-Index - 62
eISSN - 1026-7077
pISSN - 1024-123X
DOI - 10.1155/2020/5691719
Subject(s) - combinatorial auction , mathematical optimization , particle swarm optimization , common value auction , entropy (arrow of time) , benchmark (surveying) , key (lock) , computer science , genetic algorithm , mathematics , algorithm , statistics , physics , computer security , geodesy , quantum mechanics , geography
The combinatorial auction is one of the important methods used for multi-item auctions, and the solution to the winner determination problem (WDP) is the key factor in the widespread application of combinatorial auctions. This paper explores the use of the cross-entropy method to solve the WDP, which is an NP problem. The performance of the proposed approach is evaluated on the basis of two well-known benchmark test cases. The experimental results show that, compared with the genetic algorithm and the particle swarm optimization algorithm, the cross-entropyCEmethod has the advantages of a higher success rate and a shorter time for solving the WDP. Therefore, the CE method provides a high-quality solution for the effective solution of the problem of determining winning bids in combined auctions.