We're sorry but this page doesn't work properly without JavaScript enabled. Please enable it to continue.
Feedback

Secondary Market for Demand Uncertainty

Formal Metadata

Title
Secondary Market for Demand Uncertainty
Alternative Title
Secondary Market to Mitigate Demand Uncertainty
Title of Series
Number of Parts
21
Author
Contributors
License
CC Attribution - NonCommercial - NoDerivatives 4.0 International:
You are free to use, copy, distribute and transmit the work or content in unchanged form for any legal and non-commercial purpose as long as the work is attributed to the author in the manner specified by the author or licensor.
Identifiers
Publisher
Release Date
Language

Content Metadata

Subject Area
Genre
Abstract
In this talk we consider a centralized resource manager whose aim is to regulate multiple paticipants where the participatnts' goals are to purchase resource so as to satisfy uncertain demands. A secondary market mechanism is introduced to mitigate the conservativeness toward demand uncertainty. We analyze the clearing price of the secondary market, show that a unique Nash equlibrium exists in the many player limit and the NE takes the form of a threshold strategy. Moreover, we show that both the social welfare loss and the deviation of the total ordering from the optimum is of O(\sqrt{n}) where n is the number of players. This is significantly better compared with the case of no secondary market, where the social welfare loss and the deviation of the total order are both O(n).