The (reverse) auction

Abstract

This article presents a reverse auction for distributing funds for impact certificates. The auction is designed to distribute the funds in such a way that the total impact of the purchased certificates is maximized while ensuring that the budget is fully utilized without spending any additional funds. To do so, the auction starts with a very high offer price per unit of impact and gradually decreases the price until the expected expenditure matches the budget. The auction also includes a mechanism to prevent participants from receiving a higher offer by submitting a higher asking price and to mitigate effects of varying number of applications and price fluctuations across rounds – AI-Generated Abstract.