Novel double auctions for spatially distributed parking slot assignment with externalities

Abstract

This article considers a parking slot assignment problem in a sharing economy where parking slots are spatially heterogeneous. When buyers (i.e., the slot users) park and take their cars in the reserved parking slots, environment externalities are created. We incorporate the externality costs in our winner determination model and construct a padding-based Vickrey-Clarke-Groves (PV) double auction where each buyer submits an XOR bid on his/her desired parking slots at the same price. In the PV double auction, the padding intuition is adopted on either the supply or demand side. We then propose a padding-based shadow price (PS) double auction by integrating the padding method with the shadow price method. Due to the rises in buying prices and declines in selling prices, the PS double auction is likely to realize higher auctioneer’s payoff. Both PV and PS double auctions achieve incentive compatibility, individual rationality, budget balance and asymptotical efficiency. Our numerical experiments demonstrate that the proposed double auctions can realize high efficiency.

Keywords:

• Shared parking
• spatial heterogeneity
• double auctions
• incentive compatibility
• externalities

Additional information

Funding

This work is supported by the National Natural Science Foundation of China under Grant 72071093 and 72141302, the Key Project of Philosophy and Social Sciences Research of the Ministry of Education of China under Grant 21JZD027, the 2019 Guangdong Special Support Talent Program–Innovation and Entrepreneurship Leading Team (China) under Grant 2019BT02S593, the Scientific Research Project from Department of education of Guangdong province under Grant 6021210074K, and the Research Foundation of Shenzhen Polytechnic under Grant 6022312029S.

Notes on contributors

Meng Cheng

Meng Cheng is currently an assistant professor in the School of Management, Shenzhen Polytechnic, Shenzhen, China. She received her B.S. in engineering from the University of Science and Technology of China (Hefei, China) in 2011 and PhD in industrial engineering from the University of Hong Kong in 2016. Her research interests include auction mechanism design and supply chain management. She has published papers in such journals as IISE Transactions, Transportation Science, Transportation Research Part B, Transportation Research Part E, IEEE Transactions on Automation Science and Engineering, etc.

Yu Ning

Yu Ning is currently a PhD candidate in the School of Business Administration, South China University of Technology (SCUT), Guangzhou, China. She has published papers in refereed journals, including IISE Transactions, International Journal of Production Economics, Transportation Research Part A, and Annals of Operations Research. Her research interests include digital economy and supply chain management.

Su Xiu Xu

Su Xiu Xu is currently a professor in the School of Management and Economics, Beijing Institute of Technology, Beijing, China. He received his B.S. in mathematics from Harbin Institute of Technology (Harbin, China) in 2008 and PhD in industrial engineering from the University of Hong Kong in 2014. His major research interests are smart city, auction mechanism design, logistics and operations management. He has published more than 40 papers in such journals as IISE Transactions, Transportation Science, Transportation Research Part B, Transportation Research Part E, Transportation Research Part A, Production and Operations Management, Ecological Economics, International Journal of Production Economics, IEEE Transactions on Automation Science and Engineering, etc.

Zhaohua Wang

Dr. Zhaohua Wang is currently the Distinguished Professor of Cheung Kong Scholar at Beijing Institute of Technology (BIT). He is the Dean of the School of Management and Economics, BIT. He has published six books and well over 200 papers in international journals and conference proceedings, such as Nature and Nature Communications. He has hosted over 50 research programs such as National Outstanding Youth Fund and Key Project of National Natural Science Foundation of China. He currently serves as the Vice President of Chinese Society of Management Science and the executive fellow of Chinese Society for Management Science and Engineering. His research focuses on energy & environment modeling, circular economy, and data driven low carbon behavior.