UNIFORM-PRICE AUCTION FOR BANDWIDTH ALLOCATION IN THE INTERNET

It has been widely accepted that auctioning which is the pricing approach with minimal information requirement is a proper tool to manage scare network resources. Previous works focus on Vickrey auction which is incentive compatible in classic auction theory. In the beginning of this letter, the faults of the most representative auction-based mechanisms are discussed. And then a new method called Uniform-Price Auction (UPA), which has the simplest auction rule is proposed and its incentive compatibility in the network environment is also proved. Finally, the basic mode is extended to support applications which require minimum bandwidth guarantees for a given time period by introducing derivative market, and a market mechanism for network resource allocation which is predictable, riskless, and simple for end-users is completed.