Dynamic Auction Mechanisms in a Closed-Credit Economy: Sequential Slot Reallocation in Air Traffic Management

We present a multi-agent system for studying the allocation of discrete, congested resources among heterogeneous strategic agents, motivated by the problem of railway slot allocation under deregulation. Multiple operator-agents, differing in size and capacity, interact through a shared auction mechanism over repeated rounds under time-constrained decision-making. The mechanism combines a congestion-based base price that increases with aggregate demand with an asymmetric corrective adjustment that penalises the agent requesting the most slots and rewards the agent requesting the fewest, and is designed to mitigate strategic dominance by large agents while preserving transparency and congestion sensitivity. We formulate the interaction as a repeated game with incomplete information and implement the system as a real-time, web-based multi-agent environment in which human participants control individual agents and observe live marginal-cost and competitor feedback. We report exploratory observations from two structured sessions with domain experts acting as operator-agents. The congestion mechanism responds to aggregate demand as designed and the corrective incentives are actively triggered, but agents representing large operators persist with high-request strategies despite the penalty, suggesting that corrective pricing is necessary but not sufficient to neutralise strategic dominance in this multi-agent setting. A post-session debrief indicates that participants' decisions were driven by the assumed agent role rather than personal disposition, and provides qualitative support for strategic motives, such as preserving market presence and raising rivals' costs, operating alongside short-term profit maximisation. We discuss implications for multi-agent mechanism design under asymmetric budgets and outline directions for analytical validation and larger-scale multi-agent experiments.

We present a telecom-native auction mechanism for allocating bandwidth and time slots across heterogeneous-delay networks, ranging from low-Earth-orbit (LEO) satellite constellations to delay-tolerant deep-space relays. The Lorentz-Invariant Auction (LIA) treats bids as spacetime events and reweights reported values based on the horizon slack, a causal quantity derived from the earliest-arrival times relative to a public clearing horizon. Unlike other delay-equalization rules, LIA combines a causal-ordering formulation, a uniquely exponential slack correction implied by a semigroup-style invariance axiom, and a critical-value implementation that ensures truthful reported values once slacks are fixed by trusted infrastructure. We analyze the incentive result in the exogenous-slack regime and separately examine bounded slack-estimation error and endogenous-delay limitations. Under fixed feasible slacks, LIA is individually rational and achieves welfare at least $e^{-λΔ}$ relative to the optimal feasible allocation, where $Δ$ is the slack spread. We evaluate LIA on STARLINK-200, INTERNET-100, and DSN-30 across 52,500 baseline instances with market sizes $n\in\{10,20,30,40,50\}$ and conduct additional robustness sweeps. On Starlink and Internet, LIA maintains near-efficiency while eliminating measured timing rents. However, on DSN, welfare is lower in thin markets but improves with depth. We also distinguish winner-determination time from the background cost of maintaining slack estimates and study robustness beyond independent and identically distributed (iid) noise through error-spread bounds and structured (distance-biased and subnetwork-correlated) noise models. These results suggest that causal-consistent mechanism design offers a practical non-buffering alternative to synchronized delay equalization in heterogeneous telecom infrastructures.

We study the dynamic allocation of indivisible resources to strategic agents under long-term constraints, where the planner aims to maximize social welfare, satisfy multiple constraints, and elicit near-truthful reports. We find standard primal-dual methods fragile in this setting: agents easily manipulate their reports to distort dual variables, sacrificing social efficiency for individual utility. To address this, we propose the Incentive-Aware Primal-Dual (IAPD) framework. On the primal side, we integrate three components to suppress manipulation: a VCG-based payment neutralizes immediate misreporting benefits, while epoch-based lazy updates and random exploration together ensure potential future gains are outweighed by immediate penalties. On the dual side, to overcome a learning barrier due to lazy updates -- which we call the "price of incentives" -- we design a novel optimistic online learning algorithm, O-FTRL-FP. It utilizes a fixed-point oracle to resolve the circular dependency between optimistic dual variables and the resulting allocations. Ultimately, our mechanism attains $\tilde{\mathcal O}(\sqrt T)$ social welfare regret, satisfies all long-term constraints, and induces a near-truthful equilibrium. It also smoothly generalizes to multi-unit multi-demand allocation problems. Notably, this $\tilde{\mathcal O}(\sqrt T)$ regret near-matches the non-strategic $Ω(\sqrt T)$ lower bound, demonstrating that incentive-awareness can be accommodated at nearly no cost.