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A fundamental economic question is that of designing revenue-maximizing mechanisms in dynamic environments. This paper considers a simple yet compelling market model to tackle this question, where forward-looking buyers arrive at the market…

Theoretical Economics · Economics 2024-10-16 Jose Correa , Andres Cristi , Laura Vargas Koch

We study the problem of designing optimal auctions under restrictions on the set of permissible allocations. In addition to allowing us to restrict to deterministic mechanisms, we can also indirectly model non-additive valuations. We prove…

Computer Science and Game Theory · Computer Science 2016-06-07 Ian Kash , Rafael Frongillo

Distributed energy resources (DERs), such as rooftop solar panels, are growing rapidly and are reshaping power systems. To promote DERs, feed-in-tariff (FIT) is usually adopted by utilities to pay DER owners certain fixed rates for…

Computer Science and Game Theory · Computer Science 2021-10-22 Zibo Zhao , Chen Feng , Andrew L. Lu

We study a class of iterative combinatorial auctions which can be viewed as subgradient descent methods for the problem of pricing bundles to balance supply and demand. We provide concrete convergence rates for auctions in this class,…

Computer Science and Game Theory · Computer Science 2016-06-01 Jacob Abernethy , Sébastien Lahaie , Matus Telgarsky

We study the problem of designing revenue-maximizing auctions for allocating multiple goods to flexible consumers. In our model, each consumer is interested in a subset of goods known as its flexibility set and wants to consume one good…

Computer Science and Game Theory · Computer Science 2018-02-01 Shiva Navabi , Ashutosh Nayyar

As autobidding systems increasingly dominate online advertising auctions, characterizing their long-term dynamical behavior is brought to the fore. In this paper, we examine the dynamics of autobidders who optimize value subject to a…

Computer Science and Game Theory · Computer Science 2026-02-11 Ioannis Anagnostides , Ian Gemp , Georgios Piliouras , Kelly Spendlove

We propose a new all-pay auction format in which risk-loving bidders pay a constant fee each time they bid for an object whose monetary value is common knowledge among the bidders, and bidding fees are the only source of benefit for the…

Computer Science and Game Theory · Computer Science 2016-03-03 Ali Kakhbod

Repeated multi-unit auctions, where a seller allocates multiple identical items over many rounds, are common mechanisms in electricity markets and treasury auctions. We compare the two predominant formats: uniform-price and discriminatory…

Computer Science and Game Theory · Computer Science 2025-10-23 Marius Potfer , Vianney Perchet

We study whether large language models acting as autonomous bidders can tacitly collude by coordinating when to accept platform posted payouts in repeated Dutch auctions, without any communication. We present a minimal repeated auction…

Computer Science and Game Theory · Computer Science 2025-12-01 Sriram Tolety

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

We are interested in mechanisms that maximize social welfare. In [1] this problem was studied for multi-unit auctions with unit demand bidders and for the public project problem, and in each case social welfare undominated mechanisms in the…

Computer Science and Game Theory · Computer Science 2008-10-20 Krzysztof R. Apt , Vangelis Markakis

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

The problem of designing a profit-maximizing, Bayesian incentive compatible and individually rational mechanism with flexible consumers and costly heterogeneous supply is considered. In our setup, each consumer is associated with a…

Computer Science and Game Theory · Computer Science 2018-02-01 Shiva Navabi , Ashutosh Nayyar

We construct prior-free auctions with constant-factor approximation guarantees with ordered bidders, in both unlimited and limited supply settings. We compare the expected revenue of our auctions on a bid vector to the monotone price…

Computer Science and Game Theory · Computer Science 2012-12-13 Elias Koutsoupias , Stefano Leonardi , Tim Roughgarden

Advertisement auctions play a crucial role in revenue generation for e-commerce companies. To make the bidding procedure scalable to thousands of auctions, the automatic bidding (autobidding) algorithms are actively developed in the…

Computer Science and Game Theory · Computer Science 2025-10-23 Andrey Pudovikov , Alexandra Khirianova , Ekaterina Solodneva , Aleksandr Katrutsa , Egor Samosvat , Yuriy Dorn

It has become the default in markets such as ad auctions for participants to bid in an auction through automated bidding agents (autobidders) which adjust bids over time to satisfy return-over-spend constraints. Despite the prominence of…

Computer Science and Game Theory · Computer Science 2024-07-03 Renato Paes Leme , Georgios Piliouras , Jon Schneider , Kelly Spendlove , Song Zuo

We study the problem of a budget limited buyer who wants to buy a set of items, each from a different seller, to maximize her value. The budget feasible mechanism design problem aims to design a mechanism which incentivizes the sellers to…

Computer Science and Game Theory · Computer Science 2017-04-03 Pooya Jalaly , Eva Tardos

Auction-based recommender systems are prevalent in online advertising platforms, but they are typically optimized to allocate recommendation slots based on immediate expected return metrics, neglecting the downstream effects of…

Information Retrieval · Computer Science 2023-08-01 Ruiyang Xu , Jalaj Bhandari , Dmytro Korenkevych , Fan Liu , Yuchen He , Alex Nikulkov , Zheqing Zhu

We propose a new efficient online algorithm to learn the parameters governing the purchasing behavior of a utility maximizing buyer, who responds to prices, in a repeated interaction setting. The key feature of our algorithm is that it can…

Machine Learning · Statistics 2018-03-07 Debjyoti Saharoy , Theja Tulabandhula

We consider a revenue-maximizing seller with $m$ heterogeneous items and a single buyer whose valuation $v$ for the items may exhibit both substitutes (i.e., for some $S, T$, $v(S \cup T) < v(S) + v(T)$) and complements (i.e., for some $S,…

Computer Science and Game Theory · Computer Science 2017-04-11 Alon Eden , Michal Feldman , Ophir Friedler , Inbal Talgam-Cohen , S. Matthew Weinberg
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