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Constraints on agent's ability to pay play a major role in auction design for any setting where the magnitude of financial transactions is sufficiently large. Those constraints have been traditionally modeled in mechanism design as…

Computer Science and Game Theory · Computer Science 2014-04-22 Gagan Goel , Vahab Mirrokni , Renato Paes Leme

We address auctions in two-sided markets with budget constraints on buyers, a fundamental setting also crucial for applications such as display advertising. Our goal is to design efficient mechanisms that satisfy dominant strategy incentive…

Computer Science and Game Theory · Computer Science 2024-11-05 Ryosuke Sato

In this paper, we present a new model and two mechanisms for auctions in two-sided markets of buyers and sellers, where budget constraints are imposed on buyers. Our model incorporates polymatroidal environments, and is applicable to a wide…

Computer Science and Game Theory · Computer Science 2018-09-17 Hiroshi Hirai , Ryosuke Sato

In this study, we propose the polyhedral clinching auction for indivisible goods, which has so far been studied for divisible goods. As in the divisible setting by Goel et al. (2015), our mechanism enjoys incentive compatibility, individual…

Computer Science and Game Theory · Computer Science 2024-11-05 Hiroshi Hirai , Ryosuke Sato

Ad auctions in sponsored search support ``broad match'' that allows an advertiser to target a large number of queries while bidding only on a limited number. While giving more expressiveness to advertisers, this feature makes it challenging…

Computer Science and Game Theory · Computer Science 2009-01-26 Eyal Even-dar , Yishay Mansour , Vahab Mirrokni , S. Muthukrishnan , Uri Nadav

In a sponsored search auction the advertisement slots on a search result page are generally ordered by click-through rate. Bidders have a valuation, which is usually assumed to be linear in the click-through rate, a budget constraint, and…

Computer Science and Game Theory · Computer Science 2011-12-30 Riccardo Colini-Baldeschi , Monika Henzinger , Stefano Leonardi , Martin Starnberger

Automated bidding, an emerging intelligent decision making paradigm powered by machine learning, has become popular in online advertising. Advertisers in automated bidding evaluate the cumulative utilities and have private financial…

Computer Science and Game Theory · Computer Science 2023-08-22 Yidan Xing , Zhilin Zhang , Zhenzhe Zheng , Chuan Yu , Jian Xu , Fan Wu , Guihai Chen

Sponsored search auctions are commonly modeled as an assignment of a fixed set of slots (positions) to a set of advertisers, with welfare maximization being reducible to a standard matching problem. Motivated by modern ad formats, we study…

Computer Science and Game Theory · Computer Science 2026-05-13 Eleni Batziou , Georgios Birmpas , Georgios Chionas , Piotr Krysta

In this paper, we consider the problem of designing incentive compatible auctions for multiple (homogeneous) units of a good, when bidders have private valuations and private budget constraints. When only the valuations are private and the…

Computer Science and Game Theory · Computer Science 2009-04-23 Sayan Bhattacharya , Vincent Conitzer , Kamesh Munagala , Lirong Xia

Finding the optimal assignment in budget-constrained auctions is a combinatorial optimization problem with many important applications, a notable example being the sale of advertisement space by search engines (in this context the problem…

Computer Science and Game Theory · Computer Science 2015-05-13 F. Altarelli , A. Braunstein , J. Realpe-Gomez , R. Zecchina

We study an abstract optimal auction problem for a single good or service. This problem includes environments where agents have budgets, risk preferences, or multi-dimensional preferences over several possible configurations of the good…

Computer Science and Game Theory · Computer Science 2012-03-23 Saeed Alaei , Hu Fu , Nima Haghpanah , Jason Hartline , Azarakhsh Malekian

Internet search companies sell advertisement slots based on users' search queries via an auction. While there has been a lot of attention on the auction process and its game-theoretic aspects, our focus is on the advertisers. In particular,…

Data Structures and Algorithms · Computer Science 2007-05-23 Jon Feldman , S. Muthukrishnan , Martin Pal , Cliff Stein

Auctions for perishable goods such as internet ad inventory need to make real-time allocation and pricing decisions as the supply of the good arrives in an online manner, without knowing the entire supply in advance. These allocation and…

Computer Science and Game Theory · Computer Science 2012-10-05 Gagan Goel , Vahab Mirrokni , Renato Paes Leme

This note pursues two primary objectives. First, we analyze the outcomes of an all-pay auction within a store where buyers with and without financial constraints arrive at varying rates, and where buyer types are private information.…

Theoretical Economics · Economics 2024-04-16 Cemil Selcuk

Two general algorithms based on opportunity costs are given for approximating a revenue-maximizing set of bids an auctioneer should accept, in a combinatorial auction in which each bidder offers a price for some subset of the available…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Karhan Akcoglu , James Aspnes , Bhaskar DasGupta , Ming-Yang Kao

The framework of budget-feasible mechanism design studies procurement auctions where the auctioneer (buyer) aims to maximize his valuation function subject to a hard budget constraint. We study the problem of designing truthful mechanisms…

Computer Science and Game Theory · Computer Science 2019-05-07 Georgios Amanatidis , Pieter Kleer , Guido Schäfer

This study explores the monotonicity of adaptive clinching auctions -- a key mechanism in budget-constrained auctions -- with respect to fluctuations in the number of bidders. Specifically, we investigate how the addition of new bidders…

Computer Science and Game Theory · Computer Science 2025-02-11 Ryosuke Sato

In cost-per-click (CPC) or cost-per-impression (CPM) advertising campaigns, advertisers always run the risk of spending the budget without getting enough conversions. Moreover, the bidding on advertising inventory has few connections with…

Information Retrieval · Computer Science 2022-12-29 Deguang Kong , Konstantin Shmakov , Jian Yang

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

We study the efficiency of simple combinatorial auctions for the allocation of a set of items to a set of agents, with private subadditive valuation functions and budget constraints. The class we consider includes all auctions that allocate…

Computer Science and Game Theory · Computer Science 2020-07-29 Alexandros A. Voudouris
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