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We consider a revenue-maximizing seller with a single item for sale to multiple buyers with i.i.d. valuations. Akbarpour and Li (2020) show that the only optimal, credible, strategyproof auction is the ascending price auction with reserves…

Computer Science and Game Theory · Computer Science 2023-10-31 Meryem Essaidi , Matheus V. X. Ferreira , S. Matthew Weinberg

A seller chooses a reserve price in a second-price auction to maximize worst-case expected revenue when she knows only the mean of value distribution and an upper bound on either values themselves or variance. Values are private and iid.…

Theoretical Economics · Economics 2020-08-10 Alex Suzdaltsev

We compare the expected efficiency of revenue maximizing (or {\em optimal}) mechanisms with that of efficiency maximizing ones. We show that the efficiency of the revenue maximizing mechanism for selling a single item with k + log_{e/(e-1)}…

Computer Science and Game Theory · Computer Science 2009-06-08 Gagan Aggarwal , Gagan Goel , Aranyak Mehta

In the multi-unit pricing problem, multiple units of a single item are for sale. A buyer's valuation for $n$ units of the item is $v \min \{ n, d\} $, where the per unit valuation $v$ and the capacity $d$ are private information of the…

Computer Science and Game Theory · Computer Science 2017-04-18 Nikhil R. Devanur , Nima Haghpanah , Christos-Alexandros Psomas

Robust mechanism design is a rising alternative to Bayesian mechanism design, which yields designs that do not rely on assumptions like full distributional knowledge. We apply this approach to mechanisms for selling a single item, assuming…

Computer Science and Game Theory · Computer Science 2022-05-24 Nir Bachrach , Inbal Talgam-Cohen

Real-world pricing mechanisms are typically optimized using training data, a setting corresponding to the \textit{pricing query complexity} problem in Mechanism Design. The previous work [LSTW23] studies the \textit{single-distribution}…

Computer Science and Game Theory · Computer Science 2026-01-26 Houshuang Chen , Yaonan Jin , Pinyan Lu , Chihao Zhang

The existing literature on optimal auctions focuses on optimizing the expected revenue of the seller, and is appropriate for risk-neutral sellers. In this paper, we identify good mechanisms for risk-averse sellers. As is standard in the…

Computer Science and Game Theory · Computer Science 2010-04-02 Mukund Sundararajan , Qiqi Yan

We study auction design when a seller relies on machine-learning predictions of bidders' valuations that may be unreliable. Motivated by modern ML systems that are often accurate but occasionally fail in a way that is essentially…

Computer Science and Game Theory · Computer Science 2026-01-29 Ilan Lobel , Humberto Moreira , Omar Mouchtaki

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

We study the two-agent single-item bilateral trade. Ideally, the trade should happen whenever the buyer's value for the item exceeds the seller's cost. However, the classical result of Myerson and Satterthwaite showed that no mechanism can…

Computer Science and Game Theory · Computer Science 2022-05-03 Yumou Fei

We provide a Polynomial Time Approximation Scheme (PTAS) for the Bayesian optimal multi-item multi-bidder auction problem under two conditions. First, bidders are independent, have additive valuations and are from the same population.…

Computer Science and Game Theory · Computer Science 2012-11-06 Yang Cai , Zhiyi Huang

We efficiently solve the optimal multi-dimensional mechanism design problem for independent bidders with arbitrary demand constraints when either the number of bidders is a constant or the number of items is a constant. In the first…

Computer Science and Game Theory · Computer Science 2011-12-20 Constantinos Daskalakis , S. Matthew Weinberg

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

We show that the expectation of the $k^{\mathrm{th}}$-order statistic of an i.i.d. sample of size $n$ from a monotone reverse hazard rate (MRHR) distribution is convex in $n$ and that the expectation of the $(n-k+1)^{\mathrm{th}}$-order…

Theoretical Economics · Economics 2024-10-25 Mitchell Watt

We consider the sale of a single item to multiple buyers by a revenue-maximizing seller. Recent work of Akbarpour and Li formalizes \emph{credibility} as an auction desideratum, and prove that the only optimal, credible, strategyproof…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , S. Matthew Weinberg

The common way to optimize auction and pricing systems is to set aside a small fraction of the traffic to run experiments. This leads to the question: how can we learn the most with the smallest amount of data? For truthful auctions, this…

Computer Science and Game Theory · Computer Science 2021-11-09 Renato Paes Leme , Balasubramanian Sivan , Yifeng Teng , Pratik Worah

This paper proves the tight sample complexity of {\sf Second-Price Auction with Anonymous Reserve}, up to a logarithmic factor, for each of all the value distribution families studied in the literature: $[0,\, 1]$-bounded, $[1,\,…

Computer Science and Game Theory · Computer Science 2022-11-04 Yaonan Jin , Pinyan Lu , Tao Xiao

We study the pricing query complexity of revenue maximization for a single buyer whose private valuation is drawn from an unknown distribution. In this setting, the seller must learn the optimal monopoly price by posting prices and…

Computer Science and Game Theory · Computer Science 2026-02-12 Wei Tang , Yifan Wang , Mengxiao Zhang

Using duality theory techniques we derive simple, closed-form formulas for bounding the optimal revenue of a monopolist selling many heterogeneous goods, in the case where the buyer's valuations for the items come i.i.d. from a uniform…

Computer Science and Game Theory · Computer Science 2015-10-14 Yiannis Giannakopoulos

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