Multiperiod auctions for network resources

In recent years auctions have become increasingly popular for the efficient allocation of congested network resources, such as bandwidth. In This work we consider a network provider performing auctions on end-to-end tunnels periodically, and users requesting bandwidth for long sessions (typically lasting for more than one auction period). Second-chance auctions have been recently proposed for preventing established sessions from being shut down due to an isolated short market perturbation. We propose and investigate three different types of second-chance auction mechanisms as well as optimal user strategies for them. Finally, simulation results demonstrate the advantages of second-chance auctions compared to standard multiperiod PSP auctions.