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We give a detailed characterization of optimal trades under budget constraints in a prediction market with a cost-function-based automated market maker. We study how the budget constraints of individual traders affect their ability to…

Computer Science and Game Theory · Computer Science 2015-10-08 Nikhil Devanur , Miroslav Dudík , Zhiyi Huang , David M. Pennock

We analyze the problem of how to optimally bid for ad spaces in online ad auctions. For this we consider the general case of multiple ad campaigns with overlapping targeting criteria. In our analysis we first characterize the structure of…

Optimization and Control · Mathematics 2020-04-16 Erik Tillberg , Peter Marbach , Ravi Mazumdar

A fundamental assumption in classical mechanism design is that buyers are perfect optimizers. However, in practice, buyers may be limited by their computational capabilities or a lack of information, and may not be able to perfectly…

Theoretical Economics · Economics 2022-03-28 Santiago Balseiro , Omar Besbes , Francisco Castro

In this paper, we show a tight approximation guarantee for budget-feasible mechanisms with an additive buyer. We propose a new simple randomized mechanism with approximation ratio of $2$, improving the previous best known result of $3$. Our…

Computer Science and Game Theory · Computer Science 2020-07-22 Nick Gravin , Yaonan Jin , Pinyan Lu , Chenhao Zhang

We address the problem of improving bidders' strategies in prior-dependent revenue-maximizing auctions and introduce a simple and generic method to design novel bidding strategies if the seller uses past bids to optimize her mechanism. We…

Computer Science and Game Theory · Computer Science 2021-09-15 Thomas Nedelec , Marc Abeille , Clément Calauzènes , Benjamin Heymann , Vianney Perchet , Noureddine El Karoui

We present a number of models for the adword auctions used for pricing advertising slots on search engines such as Google, Yahoo! etc. We begin with a general problem formulation which allows the privately known valuation per click to be a…

Computer Science and Game Theory · Computer Science 2007-05-23 Garud Iyengar , Anuj Kumar

We show that every universally truthful randomized mechanism for combinatorial auctions with submodular valuations that provides $m^{\frac 1 2 -\epsilon}$ approximation to the social welfare and uses value queries only must use…

Computer Science and Game Theory · Computer Science 2015-03-17 Shahar Dobzinski

We investigate approximately optimal mechanisms in settings where bidders' utility functions are non-linear; specifically, convex, with respect to payments (such settings arise, for instance, in procurement auctions for energy). We provide…

Computer Science and Game Theory · Computer Science 2017-02-23 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

An indivisible object may be sold to one of $n$ agents who know their valuations of the object. The seller would like to use a revenue-maximizing mechanism but her knowledge of the valuations' distribution is scarce: she knows only the…

Theoretical Economics · Economics 2020-08-27 Alex Suzdaltsev

Motivated by recent insights into the online bipartite matching problem (\textsc{OBM}), our goal was to extend the optimal algorithm for it, namely \textsc{Ranking}, all the way to the special case of adwords problem, called \textsc{Small},…

Data Structures and Algorithms · Computer Science 2023-07-25 Vijay V. Vazirani

Assortment optimization concerns the problem of selling items with fixed prices to a buyer who will purchase at most one. Typically, retailers select a subset of items, corresponding to an "assortment" of brands to carry, and make each…

Computer Science and Game Theory · Computer Science 2022-05-23 Will Ma

We study revenue optimization pricing algorithms for repeated posted-price auctions where a seller interacts with a single strategic buyer that holds a fixed private valuation. We show that, in the case when both the seller and the buyer…

Computer Science and Game Theory · Computer Science 2018-05-08 Arsenii Vanunts , Alexey Drutsa

The system operator's scheduling problem in electricity markets, called unit commitment, is a non-convex mixed-integer program. The optimal value function is non-convex, preventing the application of traditional marginal pricing theory to…

General Economics · Economics 2024-10-03 Conleigh Byers , Brent Eldridge

In mechanism design theory, agents' types are described as their private information, and the designer may reveal some public information to affect agents' types in order to obtain more payoffs. Traditionally, each agent's private type and…

Theoretical Economics · Economics 2023-12-20 Haoyang Wu

Budget-feasible procurement has been a major paradigm in mechanism design since its introduction by Singer (2010). An auctioneer (buyer) with a strict budget constraint is interested in buying goods or services from a group of strategic…

Computer Science and Game Theory · Computer Science 2025-05-30 Georgios Amanatidis , Sophie Klumper , Evangelos Markakis , Guido Schäfer , Artem Tsikiridis

The auction theory literature has so far focused mostly on the design of mechanisms that takes the revenue or the efficiency as a yardstick. However, scenarios where the {\it capacity}, which we define as \textit{``the number of bidders the…

Computer Science and Game Theory · Computer Science 2007-11-13 Sudhir Kumar Singh , Vwani P. Roychowdhury

We study procurement games where each seller supplies multiple units of his item, with a cost per unit known only to him. The buyer can purchase any number of units from each seller, values different combinations of the items differently,…

Computer Science and Game Theory · Computer Science 2014-09-29 Hau Chan , Jing Chen

Recently, a randomized mechanism has been discovered [Dughmi, Roughgarden and Yan; STOC'11] for combinatorial auctions that is truthful in expectation and guarantees a (1-1/e)-approximation to the optimal social welfare when players have…

Computer Science and Game Theory · Computer Science 2011-09-07 Shaddin Dughmi , Jan Vondrak

In this paper, we develop a new method for finding an optimal biddingstrategy in sequential auctions, using a dynamic programming technique. Theexisting method assumes that the utility of a user is represented in anadditive form. Thus, the…

Computer Science and Game Theory · Computer Science 2013-01-14 Hiromitsu Hattori , Makoto Yokoo , Yuko Sakurai , Toramatsu Shintani

In the design and analysis of revenue-maximizing auctions, auction performance is typically measured with respect to a prior distribution over inputs. The most obvious source for such a distribution is past data. The goal is to understand…

Computer Science and Game Theory · Computer Science 2015-11-30 Richard Cole , Tim Roughgarden
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