Exchanges%20for%20Complex%20Commodities:%20Toward%20a%20General-Purpose%20System

1
Exchanges for Complex CommoditiesToward a
General-Purpose System
John Hershberger
Committee Eugene Fink Rafael Perez Dmitry B.
Goldgof
2
Motivation

• Build an automated
• exchange for trading
• goods and services

3
Outline

• Previous work

4
Outline

• Previous work
• One-attribute market

5
Outline

• Previous work
• One-attribute market
• Multi-attribute market

6
Outline

• Previous work
• One-attribute market
• Multi-attribute market
• Large number of attributes

7
Outline

• Previous work
• One-attribute market
• Multi-attribute market
• Large number of attributes
• Numeric attributes

8
Outline

• Previous work
• One-attribute market
• Multi-attribute market
• Large number of attributes
• Numeric attributes
• Complex orders

9
Outline

• Previous work
• One-attribute market
• Multi-attribute market
• Large number of attributes
• Numeric attributes
• Complex orders
• Price functions

10
Outline

• Previous work
• One-attribute market
• Multi-attribute market
• Large number of attributes
• Numeric attributes
• Complex orders
• Price functions
• Main results

11
Combinatorial auctions

• Complex commodities
• Asymmetry between
• buyers and sellers
• Illiquid

12
Standardized exchanges

• Simple commodities
• Symmetry between
• buyers and sellers
• Liquid

13
One-attribute market
Sell order
Price
Price
89.02
Buy order
GE
IBM
MCD
GE
IBM
MCD
Stock symbol
Stock symbol
14
One-attribute market
Price
Buy order
GE
IBM
MCD
Stock symbol
15
Table of items
16
Multi-attribute market
Mileage
Mileage
Sell order
Year
Year
03
03
02
02
01
01
00
00
Echo
Echo
Camry
Camry
Camaro
Camaro
Mustang
Mustang
Corvette
Corvette
Model
Model
Buy order
17
Multi-attribute market
Mileage
50,000
30,000
Year
03
02
01
00
Echo
Camry
Camaro
Mustang
Corvette
Model
18
Retrieval tree
Retrieval tree (a.k.a. trie) of simple orders
19
Main structures

• Trie of simple orders
• List of complex orders

20
Depth-first search
Buy OrderAny car madeafter 1990
21
Depth-first search With limited number of matches
Buy OrderAny car madeafter 1990
Limit 2 matches
Actual best price
22
Large number of attributes
23
PATRICIA
Model
Camry
Year
Corvette, 1988, 20K, 8
Mustang, 1996, 50K, 4
1999, 10K, 6
2000, 180K, 4
1996 Mustang 50K miles, 4 cyl.
1988 Corvette 20K miles, 8 cyl.
1999 Camry 10K miles, 6 cyl.
2000 Camry 180K miles, 4 cyl.
24
Numeric attributes
Mileage
Mileage
Sell order
MPG
MPG
23
23
22
22
21
21
120
140
120
140
Top speed
Top speed
Buy order
25
Numeric attributes
Mileage
30,000
MPG
23
22
21
120
140
Top speed
26
PATRICIA with numeric attributes
PATRICIA gives high branching factor
Mileage
90K, 18, 100
30K, 28, 90
10K, 25, 140
100K, 20, 110
10K miles, 25 MPG, 140 m.p.h.
100K miles, 20 MPG, 110 m.p.h.
30K miles, 28 MPG, 90 m.p.h.
90K miles, 18 MPG, 100 m.p.h.
27
KD-trees
Tree for handling numeric attributes
28
KD-trees
50
(50,45) Car 1
40
Car 1
(90,34) Car 4
30
MPG
(20,18) Car 2
(70,25) Car 3
20
(30,16) Car 5
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
29
KD-trees
50
(50,45) Car 1
40
Car 1
(90,34) Car 4
30
MPG
Car 2
(20,18) Car 2
(70,25) Car 3
20
(30,16) Car 5
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
30
KD-trees
50
(50,45) Car 1
40
Car 1
(90,34) Car 4
30
MPG
Car 3
Car 2
(20,18) Car 2
(70,25) Car 3
20
(30,16) Car 5
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
31
KD-trees
50
(50,45) Car 1
40
Car 1
(90,34) Car 4
30
MPG
Car 3
Car 2
(20,18) Car 2
(70,25) Car 3
20
Car 4
(30,16) Car 5
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
32
KD-trees
50
(50,45) Car 1
40
Car 1
(90,34) Car 4
30
MPG
Car 3
Car 2
(20,18) Car 2
(70,25) Car 3
20
Car 5
Car 4
(30,16) Car 5
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
33
KD-trees
50
(50,45) Car 1
40
(90,34) Car 4
30
MPG
(20,18) Car 2
(70,25) Car 3
20
(30,16) Car 5
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
34
KD-trees
50
(50,45) Car 1
40
Car 1
(90,34) Car 4
30
MPG
Car 3
Car 2
(20,18) Car 2
(70,25) Car 3
20
Car 5
Car 4
(30,16) Car 5
Car 6
10
(40,10) Car 6
20K
40K
60K
80K
0
100K
Miles
35
Complex orders
Mileage
Mileage
Sell order
50,000
50,000
MPG
MPG
25,000
36
Complex orders
Mileage
50,000
MPG
25,000
23
22
21
37
Indexing of complex orders
Miles (K)
MPG
Car 1
4060
4050
Car 2
1228
1323
Car 3
5288
2030
Car 4
8099
2444
Car 5
2535
1121
Car 6
3446
515
38
Indexing of complex orders
50
Car 1
40
Car 4
Car 1
Car 3
30
MPG
Car 3
Car 2
Car 2
20
Car 5
Car 4
Car 5
Car 6
10
Car 6
20K
40K
60K
80K
0
100K
Miles
39
Price functions
Price limit 32K (2003 Year) 2K
32K
Price
30K
Year
32K
03
28K
Order 2001-2003 Mustang
30K
02
01
28K
00
Camaro
Mustang
Corvette
Model
40
Price functions
Sell order Mustang made in 2003 Price 30,000
32K
Price
30K
Year
32K
Buy order 2001-2003 Mustang Price 32K (2003
Year) 2K
03
28K
30K
02
01
28K
00
Camaro
Mustang
Corvette
Model
41
Price functions

• Orders with identical attributes
• are in the same leaf

• Each leaf includes a tree of prices

42
Leaf nodes
Buy OrderAny car madeafter 1990
43
Leaf nodes
Buy OrderAny car madeafter 1990
Model
Corvette
Mustang
Camry
Year
Year
Year
1996
1999
1988
2000
Mileage
Mileage
Mileage
Mileage
50K
10K
20K
60K
1996 Mustang, 50K miles
1999 Camry, 10K miles
1988 Corvette, 20K miles
2000 Camry, 60K miles
44
Leaf nodes
Buy OrderAny car madeafter 1990
Model
Corvette
Mustang
Camry
Year
Year
Year
1996
1999
1988
2000
Mileage
Mileage
Mileage
Mileage
50K
10K
20K
60K
1996 Mustang, 50K miles
1999 Camry, 10K miles
1988 Corvette, 20K miles
2000 Camry, 60K miles
45
Leaf nodes
Buy OrderAny car madeafter 1990
Model
Corvette
Mustang
Camry
Year
Year
Year
1996
1999
1988
2000
Mileage
Mileage
Mileage
Mileage
50K
10K
20K
60K
1996 Mustang, 50K miles
1999 Camry, 10K miles
1988 Corvette, 20K miles
2000 Camry, 60K miles
46
Leaf nodes
Buy OrderAny car madeafter 1990
Model
Corvette
Mustang
Camry
Year
Year
Year
1996
1999
1988
2000
Mileage
Mileage
Mileage
Mileage
50K
10K
20K
60K
1996 Mustang, 50K miles
1999 Camry, 10K miles
1988 Corvette, 20K miles
2000 Camry, 60K miles
47
Leaf nodes
Buy OrderAny car madeafter 1990
Model
Corvette
Mustang
Camry
Year
Year
Year
1996
1999
1988
2000
Mileage
Mileage
Mileage
Mileage
50K
10K
20K
60K
1996 Mustang, 50K miles
1999 Camry, 10K miles
1988 Corvette, 20K miles
2000 Camry, 60K miles
3K
9K
12K
15K
Best Match
7K
10K
14K
17K
48
Main results

• Formalization of previous techniques
• Identification of open problems
• Theoretical solutions to some problems

49
Future work (Ph.D.)

• Advanced indexing structures
• Search for approximate matches
• Trading different commodity
• types in a common exchange