Reverse double auction mechanism: An efficient algorithm for E-commerce platform operations

Qian Chen, Xuan Wang, Cenying Yang, Zoe Lin Jiang, Shuhan Qi, Jiajia Zhang, Na Li, Lei Wang, Jing Xiao

Abstract: Highlights•We propose RDouMech algorithm, which can achieve precise matching and effective pricing strategies, thereby increasing the transaction efficiency of e-commerce platforms.•RDouMech allows multi-bid and multi-constraints, increases transaction prices on the platform.•We theoretically prove that buyers and sellers are motivated by individual rationality, incentive compatibilityand market clearing where the demand is equal to the supply.•Compared to the human expert-assisted AI algorithm, RDouMech raises the transaction revenues by 19.73% and doubles the social welfare.