Optimizing Bidding Strategies in First-Price Auctions in Binary Feedback Setting with Predictions
Machine Learning
2025-07-09 v2
Abstract
This paper studies Vickrey first-price auctions under binary feedback. Leveraging the enhanced performance of machine learning algorithms, the new algorithm uses past information to improve the regret bounds of the BROAD-OMD algorithm. Motivated by the growing relevance of first-price auctions and the predictive capabilities of machine learning models, this paper proposes a new algorithm within the BROAD-OMD framework (Hu et al., 2025) that leverages predictions of the highest competing bid. This paper's main contribution is an algorithm that achieves zero regret under accurate predictions. Additionally, a bounded regret bound of O(T^(3/4) * Vt^(1/4)) is established under certain normality conditions.
Cite
@article{arxiv.2506.15817,
title = {Optimizing Bidding Strategies in First-Price Auctions in Binary Feedback Setting with Predictions},
author = {Jason Tandiary},
journal= {arXiv preprint arXiv:2506.15817},
year = {2025}
}
Comments
Needs further refinement