Enhancing Continuous Double Auction for Handling Homogeneous Goods in Online Auctions

The traditional Continuous Double Auction (CDA) is suitable to handle the same type of goods. However, these goods will usually become homogeneous in online auction markets because extra attributes are added, such as shipping cost, feedback, etc. Therefore, they are no more suitable to be handled by the traditional CDAs. Nevertheless, these homogeneous goods are in nature the same and will attract a lot of sellers and buyers in online auctions. In this paper, an enhanced CDA for homogeneous goods (eCDA_h) is proposed to handle homogeneous goods. The eCDA_h mechanism allows any seller or buyer to continuously submit asks or bids towards these goods. The overall evaluation criteria are provided. Finally, the eCDA_h mechanism is shown to be superior compared with the simultaneous English auctions in the experiments.