Double Auction Modeling Based on Fuzzy Game

Abstract

Double auction is a complex system for multiple-persons game and its uncertainty. Current research on auctions is mainly based on the probability game theory. In this paper, we propose double auction model based on the fuzzy theory. Define fuzzy sets to represent the auction participants’ bidding wills. Study auction participants’ actions and decisions using Bellman and Zadeh’s concept of confluence of fuzzy decisions instead of the game theoretic Nash equilibrium. Numerical experience shows the potential of the proposed approach for application in practical auctions.