Double Auction

Double auctions are market mechanisms facilitating decentralized exchange between multiple buyers and sellers, aiming to maximize overall gains from trade (social welfare) while ensuring fair pricing. Current research focuses on designing incentive-compatible algorithms, particularly in scenarios with incomplete information (e.g., buyers and sellers uncertain about their valuations), often employing learning-based approaches to discover efficient prices and allocations. This research is crucial for understanding and improving the efficiency and fairness of online marketplaces and other decentralized systems, with implications for both theoretical economics and the practical design of blockchain-based applications.