Most existing methods for scheduling are based on centralized or hierarchic
al decision making using monolithic models. In this study, we investigate a
new method based on a distributed and locally autonomous decision structur
e using the notion of combinatorial auction. In combinatorial auction the b
idders demand a combination of dependent objects with a single bid. We show
that not only can we use this auction mechanism to handle complex resource
scheduling problems, but there exist strong links between combinatorial au
ction and Lagrangean-based decomposition. Exploring some of these propertie
s, we characterize combinatorial auction using auction protocols and paymen
t functions. This study is a first step toward developing a distributed sch
eduling framework that maintains system-wide performance while accommodatin
g local preferences and objectives. We provide some insights to this framew
ork by demonstrating four different versions of the auction mechanism using
job shop scheduling problems.