Auction Theory and Incentive Mechanism Design

Auction theory is a branch of economics which deals with how people sell or buy objects. The history of auction can be date back to 500 bc, at which time it was recorded that auctions of women for marriage were held annually in Babylon [1]. Nowadays, numerous kinds of commodities such as antiques, arts, bonds, wireless spectrum, and so on, are sold by means of auction. For instance, auctions are used to sale and disposal of assets such as the open bidding for government procurement, construction works, and right to natural resources (e.g., oil, natural gas, etc.). In recent years, auction has been widely used in spectrum resource allocation, e-commerce websites, online advertising, etc.