Optimal Combinatorial Auction for Initial Commitment Decision Problem in Virtual Organizations

We present an optimal combinatorial auction mechanism for the initial commitment decision problem (ICDP) in virtual organizations for rational agents. ICDP determines how a virtual organization (VO) planner can allocate tasks to supplier agents forming a virtual organization. We take into consideration the reputation of agents in the auction formulation. The reputation of agents is formed over time by their behavior of completing the tasks assigned to them. This is very important, since some of the agents (in real time) might be assigned other (more profitable) tasks in addition to the VO tasks and they can decide not to complete the tasks allocated to them by the VO planner.