Design and implementation of SeTiA: secure multi auction system I: Auction mechanisms

Abstract

In this two part paper, we describe the design and implementation of a secure online e-auction system called SeTiA (Secure TIFR Auction System). Various protocols have been developed/adapted to cater to different auction mechanisms, negotiations, payments, certified email, etc. Specifically, the system includes the classical auctions (English, Dutch, sealed bid first and second price), multi-unit bids, combinational (bundle) auctions and call markets (wherein buyers and sellers are matched repeatedly over time). Further, it provides features such as bid confidentiality (open or sealed), bid cancellations, identity confidentiality, auction closure (expiration time or timeout). With the growing number of online transactions over the Internet, security of negotiations and transactions is a serious issue. In this system, we achieve various levels of security using the SPKI/SDSI frameworks as well as secure payment systems. In the first part of the paper, we shall discuss new algorithmic mechanisms for multi-unit and combinational auctions, along with matching and pricing issues.