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Related papers: Prior-independent Auctions for Risk-averse Agents

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A patient seller aims to sell a good to an impatient buyer (i.e., one who discounts utility over time). The buyer will remain in the market for a period of time $T$, and her private value is drawn from a publicly known distribution. What is…

Computer Science and Game Theory · Computer Science 2023-02-14 Yuan Deng , Jieming Mao , Balasubramanian Sivan , Kangning Wang

Most of the work in the auction design literature assumes that bidders behave rationally based on the information available for every individual auction, and the revelation principle enables designers to restrict their efforts to incentive…

Computer Science and Game Theory · Computer Science 2024-05-14 Juncheng Li , Pingzhong Tang

We consider two risk-averse financial agents who negotiate the price of an illiquid indivisible contingent claim in an incomplete semimartingale market environment. Under the assumption that the agents are exponential utility maximizers…

Pricing of Securities · Quantitative Finance 2008-12-02 Michail Anthropelos , Gordan Zitkovic

This research focuses on the bid optimization problem in the real-time bidding setting for online display advertisements, where an advertiser, or the advertiser's agent, has access to the features of the website visitor and the type of ad…

Machine Learning · Computer Science 2022-10-31 Rui Fan , Erick Delage

A seller is selling a pair of divisible complementary goods to an agent. The agent consumes the goods only in a specific ratio and freely disposes of excess in either goods. The value of the bundle and the ratio are private information of…

Theoretical Economics · Economics 2022-07-15 Komal Malik , Kolagani Paramahamsa

We continue the study of the performance for fixed-price mechanisms in the bilateral trade problem, and improve approximation ratios of welfare-optimal mechanisms in several settings. Specifically, in the case where only the buyer…

Computer Science and Game Theory · Computer Science 2023-03-29 Zhengyang Liu , Zeyu Ren , Zihe Wang

A prevalent assumption in auction theory is that the auctioneer has full control over the market and that the allocation she dictates is final. In practice, however, agents might be able to resell acquired items in an aftermarket. A…

Theoretical Economics · Economics 2022-11-17 Moshe Babaioff , Nicole Immorlica , Yingkai Li , Brendan Lucier

We study envy-free pricing mechanisms in matching markets with $m$ items and $n$ budget constrained buyers. Each buyer is interested in a subset of the items on sale, and she appraises at some single-value every item in her preference-set.…

Computer Science and Game Theory · Computer Science 2016-10-31 Riccardo Colini-Baldeschi , Stefano Leonardi , Qiang Zhang

Designing an incentive-compatible auction mechanism that maximizes the auctioneer's revenue while minimizes the bidders' ex-post regret is an important yet intricate problem in economics. Remarkable progress has been achieved through…

Computer Science and Game Theory · Computer Science 2022-10-12 Tian Qin , Fengxiang He , Dingfeng Shi , Wenbing Huang , Dacheng Tao

Two sellers compete to sell identical products to a single buyer. Each seller chooses an arbitrary mechanism, possibly involving lotteries, to sell their product. The utility-maximizing buyer can choose to participate in one or both…

Computer Science and Game Theory · Computer Science 2025-05-27 Brendan Lucier , Raghuvansh R. Saxena

We study buyer-optimal procurement mechanisms when quality is contractible. When some costs are borne by every participant of a procurement auction regardless of winning, the classic analysis should be amended. We show that an optimal…

Theoretical Economics · Economics 2024-11-20 Pasha Andreyanov , Ilia Krasikov , Alex Suzdaltsev

We initiate the study of how auction design affects the division of surplus among buyers. We propose a parsimonious measure for equity and apply it to the family of standard auctions for homogeneous goods. Our surplus-equitable mechanism is…

Theoretical Economics · Economics 2024-11-14 Simon Finster , Patrick Loiseau , Simon Mauras , Mathieu Molina , Bary Pradelski

Affine Maximizer Auctions (AMAs), a generalized mechanism family from VCG, are widely used in automated mechanism design due to their inherent dominant-strategy incentive compatibility (DSIC) and individual rationality (IR). However, as the…

Computer Science and Game Theory · Computer Science 2026-02-11 Haoran Sun , Xuanzhi Xia , Xu Chu , Xiaotie Deng

We consider the classical mathematical economics problem of {\em Bayesian optimal mechanism design} where a principal aims to optimize expected revenue when allocating resources to self-interested agents with preferences drawn from a known…

Computer Science and Game Theory · Computer Science 2010-01-15 Shuchi Chawla , Jason Hartline , David Malec , Balasubramanian Sivan

We study the optimal behavior of a bidder in a real-time auction subject to the requirement that a specified collections of heterogeneous items be acquired within given time constraints. The problem facing this bidder is cast as a…

Computational Engineering, Finance, and Science · Computer Science 2021-11-17 Ryan J. Kinnear , Ravi R. Mazumdar , Peter Marbach

We study the problem of option pricing and hedging strategies within the frame-work of risk-return arguments. An economic agent is described by a utility function that depends on profit (an expected value) and risk (a variance). In the…

Statistical Mechanics · Physics 2008-12-02 Erik Aurell , Karol Życzkowski

This paper studies some basic problems in a multiple-object auction model using methodologies from theoretical computer science. We are especially concerned with situations where an adversary bidder knows the bidding algorithms of all the…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Ming-Yang Kao , Junfeng Qi , Lei Tan

Classical optimal auction theory assumes that bids reach the seller directly. We study how this picture changes when a revenue-maximizing intermediary controls access to the seller's auction. Motivated by blockchain auctions, online…

Computer Science and Game Theory · Computer Science 2026-05-22 Jingyi Liu , Aviad Rubinstein , Ertem Nusret Tas , S. Matthew Weinberg , Qianfan Zhang

We consider portfolio selection under nonparametric $\alpha$-maxmin ambiguity in the neighbourhood of a reference distribution. We show strict concavity of the portfolio problem under ambiguity aversion. Implied demand functions are…

General Economics · Economics 2022-06-22 Michail Anthropelos , Paul Schneider

This paper develops a general approach, rooted in statistical learning theory, to learning an approximately revenue-maximizing auction from data. We introduce $t$-level auctions to interpolate between simple auctions, such as welfare…

Computer Science and Game Theory · Computer Science 2015-06-12 Jamie Morgenstern , Tim Roughgarden