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In this paper, we introduce a novel approach for reducing the $k$-item $n$-bidder auction with additive valuation to $k$-item $1$-bidder auctions. This approach, called the \emph{Best-Guess} reduction, can be applied to address several…

Computer Science and Game Theory · Computer Science 2014-06-24 Andrew Chi-Chih Yao

In budget-feasible mechanism design, a buyer wishes to procure a set of items of maximum value from self-interested players. We have a valuation function $v:2^U \to \mathbb{R}_+$, where $U$ is the set of all items, where $v(S)$ specifies…

Computer Science and Game Theory · Computer Science 2026-03-25 Rian Neogi , Kanstantsin Pashkovich , Chaitanya Swamy

As commerce shifts to digital marketplaces, platforms increasingly monetize traffic through Sponsored Shopping auctions. Unlike classic ``Sponsored Search", where an advertiser typically bids for a single link, these settings involve…

Computer Science and Game Theory · Computer Science 2026-02-27 Paul Dütting , Yuhao Li , Renato Paes Leme , Kelly Spendlove , Yifeng Teng

We consider the problem of maximizing revenue for a monopolist offering multiple items to multiple heterogeneous buyers. We develop a simple mechanism that obtains a constant factor approximation under the assumption that the buyers' values…

Computer Science and Game Theory · Computer Science 2016-08-10 Shuchi Chawla , J. Benjamin Miller

In a seminal paper, McAfee (1992) presented a truthful mechanism for double auctions, attaining asymptotically-optimal gain-from-trade without any prior information on the valuations of the traders. McAfee's mechanism handles…

Computer Science and Game Theory · Computer Science 2017-12-20 Erel Segal-Halevi , Avinatan Hassidim , Yonatan Aumann

We provide a constructive proof of Border's theorem [Bor91, HR15a] and its generalization to reduced-form auctions with asymmetric bidders [Bor07, MV10, CKM13]. Given a reduced form, we identify a subset of Border constraints that are…

Computer Science and Game Theory · Computer Science 2017-11-21 Yang Cai , Constantinos Daskalakis , S. Matthew Weinberg

We introduce a gradient-based approach for the problem of Bayesian optimal experimental design to learn causal models in a batch setting -- a critical component for causal discovery from finite data where interventions can be costly or…

Machine Learning · Computer Science 2023-06-05 Yashas Annadani , Panagiotis Tigas , Desi R. Ivanova , Andrew Jesson , Yarin Gal , Adam Foster , Stefan Bauer

The seminal impossibility result of Myerson and Satterthwaite (1983) states that for bilateral trade, there is no mechanism that is individually rational (IR), incentive compatible (IC), weakly budget balanced, and efficient. This has led…

Computer Science and Game Theory · Computer Science 2018-02-23 Moshe Babaioff , Yang Cai , Yannai A. Gonczarowski , Mingfei Zhao

We study the mechanism design problem of selling $k$ items to unit-demand buyers with private valuations for the items. A buyer either participates directly in the auction or is represented by an intermediary, who represents a subset of…

Computer Science and Game Theory · Computer Science 2021-11-23 Gagan Aggarwal , Kshipra Bhawalkar , Guru Guruganesh , Andres Perlroth

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

High-dimensional black-box optimisation remains an important yet notoriously challenging problem. Despite the success of Bayesian optimisation methods on continuous domains, domains that are categorical, or that mix continuous and…

Machine Learning · Statistics 2021-06-11 Xingchen Wan , Vu Nguyen , Huong Ha , Binxin Ru , Cong Lu , Michael A. Osborne

Bayesian Optimization, leveraging Gaussian process models, has proven to be a powerful tool for minimizing expensive-to-evaluate objective functions by efficiently exploring the search space. Extensions such as constrained Bayesian…

Computation · Statistics 2025-06-03 Yezhuo Li , Qiong Zhang , Madhura Limaye , Gang Li

The Vickrey-Clarke-Groves (VCG) mechanism is infamously revenue non-monotone in combinatorial auctions. I.e., when a buyer increases their value for a bundle of items, the total auction revenue may decrease. Combinatorial auctions exhibit…

Theoretical Economics · Economics 2026-02-25 Jason Hartline

In discrete-variable black-box optimization, the number of candidate solutions grows combinatorially, while each evaluation is often expensive. Therefore, it is important to identify promising solutions efficiently within a limited number…

Quantum Physics · Physics 2026-05-12 Reo Shikanai , Masayuki Ohzeki

Bilateral trade is a fundamental economic scenario comprising a strategically acting buyer and seller, each holding valuations for the item, drawn from publicly known distributions. A mechanism is supposed to facilitate trade between these…

Computer Science and Game Theory · Computer Science 2017-10-24 Riccardo Colini-Baldeschi , Paul Goldberg , Bart de Keijzer , Stefano Leonardi , Stefano Turchetta

Traditionally, the Bayesian optimal auction design problem has been considered either when the bidder values are i.i.d., or when each bidder is individually identifiable via her value distribution. The latter is a reasonable approach when…

Computer Science and Game Theory · Computer Science 2023-07-11 Nikhil R. Devanur , Zhiyi Huang , Christos-Alexandros Psomas

We study revenue maximization through sequential posted-price (SPP) mechanisms in single-dimensional settings with $n$ buyers and independent but not necessarily identical value distributions. We construct the SPP mechanisms by considering…

Computer Science and Game Theory · Computer Science 2021-01-11 Hedyeh Beyhaghi , Negin Golrezaei , Renato Paes Leme , Martin Pal , Balasubramanian Sivan

We study a classical Bayesian mechanism design problem where a seller is selling multiple items to multiple buyers. We consider the case where the seller has costs to produce the items, and these costs are private information to the seller.…

Computer Science and Game Theory · Computer Science 2020-04-20 Yang Cai , Mingfei Zhao

A truthful mechanism for a Bayesian single-item auction results with some ex-ante revenue for the seller, and some ex-ante total surplus for the buyers. We study the Pareto frontier of the set of seller-buyers ex-ante utilities, generated…

Computer Science and Game Theory · Computer Science 2026-02-13 Moshe Babaioff , Sijin Chen , Zhaohua Chen , Yiding Feng

Double auctions are widely used in financial markets, such as those for stocks, derivatives, currencies, and commodities, to match demand and supply. Once all buyers and sellers have placed their trade requests, the exchange determines how…

Logic in Computer Science · Computer Science 2024-10-25 Mohit Garg , N. Raja , Suneel Sarswat , Abhishek Kr Singh