Abstract
This paper presents a secure Generalized Vickrey Auction (GVA) scheme that does not require third-party servers, i.e., the scheme is executed only by an auctioneer and bidders. Combinatorial auctions, in which multiple goods are sold simultaneously, have recently attracted considerable attention. The GVA can handle combinatorial auctions and has good theoretical characteristics such as incentive compatibility and Pareto efficiency.
Secure GVA schemes have been developed to prevent frauds by an auctioneer. However, existing methods require third-party servers to execute the protocol. Having third-party servers that are operated by independent organizations is difficult in practice. Therefore, it is desirable that a protocol be executed by the participants themselves. However, if bidders take part in the execution of the auction procedure, a bidder might have an incentive to be an active adversary so that he manipulates the declarations of other bidders to become a winner or to decrease his payment.
In our proposed scheme, we use a new protocol that can achieve the same outcome as the GVA. In this protocol, the procedure executed by a bidder affects neither the prices nor the allocation of the bidder. Therefore, a bidder does not have an incentive to be an active adversary.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Abe, M., Suzuki, K.: M+1-st price auction using homomorphic encryption. In: Proceedings of Public Key Cryptography 2002 (2002)
Baudron, O., Stern, J.: Non-interactive private auctions. In: Syverson, P.F. (ed.) FC 2001. LNCS, vol. 2339, p. 354. Springer, Heidelberg (2002)
Bellman, R.: Dynamic Programming. Princeton University Press, Princeton (1957)
Ben-Or, M., Goldwasser, S., Wigderson, A.: Completeness theorems for noncryptographic fault-tolerant distributed computation. In: Proceedings of 20th ACM Symposium on the Theory of Computing, pp. 1–10 (1988)
Brandt, F.: Fully private auctions in a constant number of rounds. In: Wright, R.N. (ed.) FC 2003. LNCS, vol. 2742, pp. 223–238. Springer, Heidelberg (2003)
Cachin, C.: Efficient private bidding and auctions with an oblivious third party. In: Proceedings of 6th ACM Conference on Computer and Communications Security, pp. 120–127 (1999)
Chida, K., Kobayashi, K., Morita, H.: Efficient sealed-bid auctions for massive numbers of bidders with lump comparison. In: Davida, G.I., Frankel, Y. (eds.) ISC 2001. LNCS, vol. 2200, p. 408. Springer, Heidelberg (2001)
Clarke, E.H.: Multipart pricing of public goods. Public Choice 2, 19–33 (1971)
de Vries, S., Vohra, R.V.: Combinatorial auctions: A survey. INFORMS Journal on Computing 15 (2003)
Groves, T.: Incentives in teams. Econometrica 41, 617–631 (1973)
Harkavy, M., Tygar, J.D., Kikuchi, H.: Electronic auctions with private bids. In: Proceedings of Third USENIX Workshop on Electronic Commerce, pp. 61–74 (1998)
Juels, A., Szydlo, M.: A two-server, sealed-bid auction protocol. In: Blaze, M. (ed.) FC 2002. LNCS, vol. 2357, pp. 72–86. Springer, Heidelberg (2003)
Kikuchi, H., Harkavy, M., Tygar, J.D.: Multi-round anonymous auction protocols. In: Proceedings of first IEEE Workshop on Dependable and Real-Time ECommerce Systems, pp. 62–69 (1998)
Kikuchi, H. (M+1)st-Price auction protocol. In: Syverson, P.F. (ed.) FC 2001. LNCS, vol. 2339, p. 341. Springer, Heidelberg (2002)
Klemperer, P.: Auction theory: A guide to the literature. Journal of Economics Surveys 13(3), 227–286 (1999)
Kobayashi, K., Morita, H., Suzuki, K., Hakuta, M.: Efficient sealed-bid auction by using one-way functions. IEICE Trans. Fundamentals E84-A(1) (2001)
Krishna, V.: Auction Theory. Academic Press, London (2002)
Kudo, M.: Secure electronic sealed-bid auction protocol with public key cryptography. IEICE Trans. Fundamentals E81-A(1) (1998)
Lipmaa, H., Asokan, N., Niemi, V.: Secure Vickrey auctions without threshold trust. In: Blaze, M. (ed.) FC 2002. LNCS, vol. 2357, pp. 87–101. Springer, Heidelberg (2003)
McMillan, J.: Selling spectrum rights. Journal of Economics Perspectives 8(3), 145–162 (1994)
Naor, M., Pinkas, B., Sumner, R.: Privacy preserving auctions and mechanism design. In: Proceedings of the First ACM Conference on Electronic Commerce (EC 1999), pp. 129–139 (1999)
Omote, K., Myaji, A.: An anonymous auction protocol with a single non-trusted center using binary trees. In: Okamoto, E., Pieprzyk, J.P., Seberry, J. (eds.) ISW 2000. LNCS, vol. 1975, pp. 108–120. Springer, Heidelberg (2000)
Omote, K., Miyaji, A.: A second-price sealed-bid auction with the discriminant of the p-th root. In: Blaze, M. (ed.) FC 2002. LNCS, vol. 2357, pp. 57–71. Springer, Heidelberg (2003)
Rasmusen, E.: Games and Information. Blackwell, Malden (1989)
Rothkopf, M.H., Teisberg, T.J., Kahn, E.P.: Why are Vickrey auctions rare. Journal of Political Economy 98(1), 94–109 (1990)
Rothkopf, M.H., Pekeč, A., Harstad, R.M.: Computationally manageable combinatorial auctions. Management Science 44(8), 1131–1147 (1998)
Sako, K.: Universally verifiable auction protocol which hides losing bids. In: Proceedings of Public Key Cryptography 2000, pp. 35–39 (2000)
Sakurai, K., Miyazaki, S.: A bulletin-board based digital auction scheme with bidding down strategy. In: Proceedings of 1999 International Workshop on Cryptographic Techniques and E-Commerce, pp. 180–187 (1999)
Sandholm, T.: An algorithm for optimal winner determination in combinatorial auction. In: Proceedings of the Sixteenth International Joint Conference on Artificial Intelligence (IJCAI 1999), pp. 542–547 (1999)
Shneidman, J., Parkes, D.C.: Rationality and self-interest in peer to peer networks. In: Kaashoek, M.F., Stoica, I. (eds.) IPTPS 2003. LNCS, vol. 2735, Springer, Heidelberg (2003)
Stubblebine, S.G., Syverson, P.F.: Fair on-line auctions without special trusted parties. In: Franklin, M.K. (ed.) FC 1999. LNCS, vol. 1648, p. 230. Springer, Heidelberg (1999)
Suzuki, K., Kobayashi, K., Morita, H.: Efficient sealed-bid auction using hash chain. In: Won, D. (ed.) ICISC 2000. LNCS, vol. 2015, pp. 183–191. Springer, Heidelberg (2001)
Suzuki, K., Yokoo, M.: Secure combinatorial auctions by dynamic programming with polynomial secret sharing. In: Blaze, M. (ed.) FC 2002. LNCS, vol. 2357, pp. 44–56. Springer, Heidelberg (2003)
Suzuki, K., Yokoo, M.: Secure Generalized Vickrey Auction using homomorphic encryption. In: Wright, R.N. (ed.) FC 2003. LNCS, vol. 2742, pp. 239–249. Springer, Heidelberg (2003)
Varian, H.R.: Economic mechanism design for computerized agents. In: Proceedings of the First Usenix Workshop on Electronic Commerce (1995)
Vickrey, W.: Counter speculation, auctions, and competitive sealed tenders. Journal of Finance 16, 8–37 (1961)
Watanabe, Y., Imai, H.: Reducing the round complexity of a sealed-bid auction protocol with an off-line TTP. In: Proceedings of ACM Conference on Computer and Communications Security 2000, pp. 80–86 (2000)
Yao, C.: How to generate and exchange secrets. In: Proceedings of IEEE Symposium on Foundations of Computer Science, pp. 162–167 (1986)
Yokoo, M., Sakurai, Y., Matsubara, S.: Robust combinatorial auction protocol against false-name bids. Artificial Intelligence 130(2), 167–181 (2001)
Yokoo, M., Sakurai, Y., Matsubara, S.: The effect of false-name bids in combinatorial auctions: New fraud in Internet auctions. Games and Economic Behavior 46(1), 174–188 (2004)
Yokoo, M., Suzuki, K.: Secure multi-agent dynamic programming based on homomorphic encryption and its application to combinatorial auctions. In: Proceedings of the First International Conference on Autonomous Agents and Multiagent Systems (AAMAS 2002), pp. 112–119 (2002)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2004 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Yokoo, M., Suzuki, K. (2004). Secure Generalized Vickrey Auction without Third-party Servers. In: Juels, A. (eds) Financial Cryptography. FC 2004. Lecture Notes in Computer Science, vol 3110. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-27809-2_17
Download citation
DOI: https://doi.org/10.1007/978-3-540-27809-2_17
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-22420-4
Online ISBN: 978-3-540-27809-2
eBook Packages: Springer Book Archive