MUDA: A Truthful Multi-Unit Double-Auction Mechanism


  • Erel Segal-Halevi Ariel University
  • Avinatan Hassidim Bar-Ilan University
  • Yonatan Aumann Bar-Ilan University


Mechanism design, Auctions, Bilateral trade, Markets


In a seminal paper, McAfee (1992) presented a truthful mechanism for double auctions, attaining asymptotically-optimal gain-from-trade without any prior information on the valuations of the traders. McAfee's mechanism handles single-parametric agents, allowing each seller to sell a single unit and each buyer to buy a single unit. This paper presents a double-auction mechanism that handles multi-parametric agents and allows multiple units per trader, as long as the valuation functions of all traders have decreasing marginal returns. The mechanism is prior-free, ex-post individually-rational, dominant-strategy truthful and strongly-budget-balanced. Its gain-from-trade approaches the optimum when the market size is sufficiently large.




How to Cite

Segal-Halevi, E., Hassidim, A., & Aumann, Y. (2018). MUDA: A Truthful Multi-Unit Double-Auction Mechanism. Proceedings of the AAAI Conference on Artificial Intelligence, 32(1). Retrieved from



AAAI Technical Track: Game Theory and Economic Paradigms