Parkes, DavidUngar, Lyle H.2010-05-182000Parkes, David C., and Lyle H. Ungar. 2000. Iterative combinatorial auctions: Theory and practice. In Proceedings: Seventeenth National Conference on Artificial Intelligence (AAAI-2000): Twelfth Innovative Applications of Artificial Intelligence Conference (IAAI-2000), ed. American Association for Artificial Intelligence, 74-81. Menlo Park, C.A.: AAAI Press ; Cambridge, M.A.: MIT Press.0-262-51112-69780262511124http://nrs.harvard.edu/urn-3:HUL.InstRepos:4101023Combinatorial auctions, which allow agents to bid directly for bundles of resources, are necessary for optimal auction-based solutions to resource allocation problems with agents that have non-additive values for resources, such as distributed scheduling and task assignment problems. We introduce iBundle, the first iterative combinatorial auction that is optimal for a reasonable agent bidding strategy, in this case myopic best-response bidding. Its optimality is proved with a novel connection to primal-dual optimization theory. We demonstrate orders of magnitude performance improvements over the only other known optimal combinatorial auction, the Generalized Vickrey Auction.en-USMonograph or Book2010-05-18