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We consider the problem of a firm seeking to use personalized pricing to sell an exogenously given stock of a product over a finite selling horizon to different consumer types. We assume that the type of an arriving consumer can be observed…

Machine Learning · Computer Science 2021-10-08 Ningyuan Chen , Guillermo Gallego

The problem of statistical learning is to construct an accurate predictor of a random variable as a function of a correlated random variable on the basis of an i.i.d. training sample from their joint distribution. Allowable predictors are…

Information Theory · Computer Science 2009-04-30 Maxim Raginsky

We address online learning in complex auction settings, such as sponsored search auctions, where the value of the bidder is unknown to her, evolving in an arbitrary manner and observed only if the bidder wins an allocation. We leverage the…

Computer Science and Game Theory · Computer Science 2018-06-04 Zhe Feng , Chara Podimata , Vasilis Syrgkanis

The majority of online display ads are served through real-time bidding (RTB) --- each ad display impression is auctioned off in real-time when it is just being generated from a user visit. To place an ad automatically and optimally, it is…

Machine Learning · Computer Science 2017-01-13 Han Cai , Kan Ren , Weinan Zhang , Kleanthis Malialis , Jun Wang , Yong Yu , Defeng Guo

In a multiple-object auction, every bidder tries to win as many objects as possible with a bidding algorithm. This paper studies position-randomized auctions, which form a special class of multiple-object auctions where a bidding algorithm…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Yuyu Chen , Ming-Yang Kao , Hsueh-I Lu

Financial market forecasting remains a formidable challenge despite the surge in computational capabilities and machine learning advancements. While numerous studies have underscored the precision of computer-generated market predictions,…

Computational Finance · Quantitative Finance 2023-11-16 Reza Yarbakhsh , Mahdieh Soleymani Baghshah , Hamidreza Karimaghaie

This paper discusses the revenue management (RM) problem to maximize revenue by pricing items or services. One challenge in this problem is that the demand distribution is unknown and varies over time in real applications such as airline…

Machine Learning · Computer Science 2024-05-09 Kazuma Shimizu , Junya Honda , Shinji Ito , Shinji Nakadai

We study the optimal auction design problem when bidders' preferences follow the maxmin expected utility model. We suppose that each bidder's set of priors consists of beliefs close to the seller's belief, where "closeness" is defined by a…

Theoretical Economics · Economics 2021-10-19 Sosung Baik , Sung-Ha Hwang

Many payment platforms hold large-scale marketing campaigns, which allocate incentives to encourage users to pay through their applications. To maximize the return on investment, incentive allocations are commonly solved in a two-stage…

Machine Learning · Computer Science 2022-01-03 Xuanying Chen , Zhining Liu , Li Yu , Sen Li , Lihong Gu , Xiaodong Zeng , Yize Tan , Jinjie Gu

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

In many first-price auctions, bidders face considerable strategic uncertainty: They cannot perfectly anticipate the other bidders' bidding behavior. We propose a model in which bidders do not know the entire distribution of opponent bids…

Theoretical Economics · Economics 2022-03-30 Bernhard Kasberger

Inspired by Internet ad auction applications, we study the problem of allocating a single item via an auction when bidders place very different values on the item. We formulate this as the problem of prior-free auction and focus on…

Computer Science and Game Theory · Computer Science 2009-09-30 Vahab Mirrokni , S. Muthukrishnan , Uri Nadav

We study revenue maximization in settings where agents' values are interdependent: each agent receives a signal drawn from a correlated distribution and agents' values are functions of all of the signals. We introduce a variant of the…

Computer Science and Game Theory · Computer Science 2014-08-20 Shuchi Chawla , Hu Fu , Anna Karlin

In this paper, we present the first approximation algorithms for the problem of designing revenue optimal Bayesian incentive compatible auctions when there are multiple (heterogeneous) items and when bidders can have arbitrary demand and…

Computer Science and Game Theory · Computer Science 2010-03-30 Sayan Bhattacharya , Gagan Goel , Sreenivas Gollapudi , Kamesh Munagala

Augmenting the input of algorithms with predictions is an algorithm design paradigm that suggests leveraging a (possibly erroneous) prediction to improve worst-case performance guarantees when the prediction is perfect (consistency), while…

Computer Science and Game Theory · Computer Science 2025-11-20 Georgios Amanatidis , Evangelos Markakis , Christodoulos Santorinaios , Guido Schäfer , Panagiotis Tsamopoulos , Artem Tsikiridis

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.…

Machine Learning · Computer Science 2025-07-09 Jason Tandiary

We consider the problem of bid prediction in repeated auctions and evaluate the performance of econometric methods for learning agents using a dataset from a mainstream sponsored search auction marketplace. Sponsored search auctions is a…

Computer Science and Game Theory · Computer Science 2020-11-02 Gali Noti , Vasilis Syrgkanis

We study revenue variance in the sale of $k$ homogeneous items to risk-neutral, unit-demand bidders with independent private values. Although the Revenue Equivalence Theorem implies that standard auctions generate the same expected revenue,…

Computer Science and Game Theory · Computer Science 2026-02-16 Marek Bojko , Preston McAfee , Renato Paes Leme , Balasubramanian Sivan , Sergei Vassilvitskii

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

The transition of display ad exchanges from second-price auctions (SPA) to first-price auctions (FPA) has raised questions about its impact on revenue. Auction theory predicts the revenue equivalence between these two auction formats.…

Computer Science and Game Theory · Computer Science 2024-12-04 Martin Bichler , Alok Gupta , Matthias Oberlechner