Properties of the DGS-Auction Algorithm
This paper investigates algorithmic properties and overall performance of the exact auction algorithm in Demange, Gale and Sotomayor (J. Polit. Economy 94: 863-872, 1986) or DGS for short. This task is achieved by interpreting DGS as a graph and by conducting a large number of computer simulations. The crucial step in DGS is when the auctioneer selects a so-called minimal overdemanded set of items