English

On Infinite Separations Between Simple and Optimal Mechanisms

Computer Science and Game Theory 2022-05-27 v1

Abstract

We consider a revenue-maximizing seller with kk heterogeneous items for sale to a single additive buyer, whose values are drawn from a known, possibly correlated prior D\mathcal{D}. It is known that there exist priors D\mathcal{D} such that simple mechanisms -- those with bounded menu complexity -- extract an arbitrarily small fraction of the optimal revenue. This paper considers the opposite direction: given a correlated distribution D\mathcal{D} witnessing an infinite separation between simple and optimal mechanisms, what can be said about D\mathcal{D}? Previous work provides a framework for constructing such D\mathcal{D}: it takes as input a sequence of kk-dimensional vectors satisfying some geometric property, and produces a D\mathcal{D} witnessing an infinite gap. Our first main result establishes that this framework is without loss: every D\mathcal{D} witnessing an infinite separation could have resulted from this framework. Even earlier work provided a more streamlined framework. Our second main result establishes that this restrictive framework is not tight. That is, we provide an instance D\mathcal{D} witnessing an infinite gap, but which provably could not have resulted from the restrictive framework. As a corollary, we discover a new kind of mechanism which can witness these infinite separations on instances where the previous ''aligned'' mechanisms do not.

Keywords

Cite

@article{arxiv.2205.13039,
  title  = {On Infinite Separations Between Simple and Optimal Mechanisms},
  author = {C. Alexandros Psomas and Ariel Schvartzman and S. Matthew Weinberg},
  journal= {arXiv preprint arXiv:2205.13039},
  year   = {2022}
}
R2 v1 2026-06-24T11:28:56.900Z