Designing Hybrid Mechanisms to Overcome Congestion in Sequential Dutch Auctions

A common problem in many mature markets is how to deal with congestion—a situation in which transaction requests from market participants cannot be accommodated in an expedited manner. This paper examines the congestion problem in sequential Dutch auction markets. Transactions in these markets typically involve perishable goods, thus market clearing speed is crucial. Traditionally, sequential Dutch auctions are implemented with fast-paced auction clocks that process equally attractive bids in the order they arrive and only award the first bidder as the winner in each round. This could lead to... Mehr ...