Operations Research, Systems Engineering and Industrial Engineering Commons^™

Distributing Complementary Resources Across Multiple Periods With Stochastic Demand, Shih-Fen Cheng, John Tajan, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

In this paper, we evaluate whether the robustness of a market mechanism that allocates complementary resources could be improved through the aggregation of time periods in which resources are consumed. In particular, we study a multi-round combinatorial auction that is built on a general equilibrium framework. We adopt the general equilibrium framework and the particular combinatorial auction design from the literature, and we investigate the benefits and the limitation of time-period aggregation when demand-side uncertainties are introduced. By using simulation experiments, we show that under stochastic conditions the performance variation of the process decreases as the time frame length (time …