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Recent spectrum auctions in the United Kingdom, and some proposals for future auctions of spectrum in the United States, are based on preliminary price discovery rounds, followed by calculation of final prices for the winning buyers. For…

Computer Science and Game Theory · Computer Science 2012-09-12 Vineet Abhishek , Bruce Hajek

Search auctions have become a dominant source of revenue generation on the Internet. Such auctions have typically used per-click bidding and pricing. We propose the use of hybrid auctions where an advertiser can make a per-impression as…

Computer Science and Game Theory · Computer Science 2009-01-26 Ashish Goel , Kamesh Munagala

We introduce a new numerical framework to learn optimal bidding strategies in repeated auctions when the seller uses past bids to optimize her mechanism. Crucially, we do not assume that the bidders know what optimization mechanism is used…

Computer Science and Game Theory · Computer Science 2021-02-09 Thomas Nedelec , Jules Baudet , Vianney Perchet , Noureddine El Karoui

Auction theory traditionally assumes that bidders' valuation distributions are known to the auctioneer, such as in the celebrated, revenue-optimal Myerson auction. However, this theory does not describe how the auctioneer comes to possess…

Computer Science and Game Theory · Computer Science 2014-07-11 Avrim Blum , Yishay Mansour , Jamie Morgenstern

We study a repeated trading problem in which a mechanism designer facilitates trade between a single seller and multiple buyers. Our model generalizes the classic bilateral trade setting to a multi-buyer environment. Specifically, the…

Computer Science and Game Theory · Computer Science 2025-03-04 Anna Lunghi , Matteo Castiglioni , Alberto Marchesi

Artificial intelligence algorithms are increasingly used by firms to set prices. Previous research shows that they can exhibit collusive behaviour, but how quickly they can do so has so far remained an open question. I show that a modern…

General Economics · Economics 2026-04-20 Kevin Michael Frick

In combinatorial auctions, a designer must decide how to allocate a set of indivisible items amongst a set of bidders. Each bidder has a valuation function which gives the utility they obtain from any subset of the items. Our focus is…

Computer Science and Game Theory · Computer Science 2017-03-31 Shaddin Dughmi , Bryan Wilder

In diffusion auctions, sellers can leverage an underlying social network to broaden participation, thereby increasing their potential revenue. Specifically, sellers can incentivise participants in their auction to diffuse information about…

Computer Science and Game Theory · Computer Science 2025-11-13 Rustam Galimullin , Munyque Mittelmann , Laurent Perrussel

This paper aims to investigate and achieve seller-side fairness within online marketplaces, where many sellers and their items are not sufficiently exposed to customers in an e-commerce platform. This phenomenon raises concerns regarding…

Pricing algorithms have demonstrated the capability to learn tacit collusion that is largely unaddressed by current regulations. Their increasing use in markets, including oligopolistic industries with a history of collusion, calls for…

Computer Science and Game Theory · Computer Science 2025-02-26 Paul Friedrich , Barna Pásztor , Giorgia Ramponi

Innovative auction methods can be exploited to increase profits, with Shubik's famous "dollar auction" perhaps being the most widely known example. Recently, some mainstream e-commerce web sites have apparently achieved the same end on a…

Computer Science and Game Theory · Computer Science 2015-03-13 John W. Byers , Michael Mitzenmacher , Georgios Zervas

Algorithmic collusion is an emerging concept in current artificial intelligence age. Whether algorithmic collusion is a creditable threat remains as an argument. In this paper, we propose an algorithm which can extort its human rival to…

Econometrics · Economics 2018-02-23 Nan Zhou , Li Zhang , Shijian Li , Zhijian Wang

Two general algorithms based on opportunity costs are given for approximating a revenue-maximizing set of bids an auctioneer should accept, in a combinatorial auction in which each bidder offers a price for some subset of the available…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Karhan Akcoglu , James Aspnes , Bhaskar DasGupta , Ming-Yang Kao

In the context of competitive multiplayer games, collusion happens when two or more teams decide to collaborate towards a common goal, with the intention of gaining an unfair advantage from this cooperation. The task of identifying…

Machine Learning · Computer Science 2022-03-11 Laura Greige , Fernando De Mesentier Silva , Meredith Trotter , Chris Lawrence , Peter Chin , Dilip Varadarajan

In a sponsored search auction the advertisement slots on a search result page are generally ordered by click-through rate. Bidders have a valuation, which is usually assumed to be linear in the click-through rate, a budget constraint, and…

Computer Science and Game Theory · Computer Science 2011-12-30 Riccardo Colini-Baldeschi , Monika Henzinger , Stefano Leonardi , Martin Starnberger

E-commerce marketplaces provide business opportunities to millions of sellers worldwide. Some of these sellers have special relationships with the marketplace by virtue of using their subsidiary services (e.g., fulfillment and/or shipping…

Computers and Society · Computer Science 2024-07-03 Abhisek Dash , Abhijnan Chakraborty , Saptarshi Ghosh , Animesh Mukherjee , Krishna P. Gummadi

There has been substantial recent concern that pricing algorithms might learn to ``collude.'' Supra-competitive prices can emerge as a Nash equilibrium of repeated pricing games, in which sellers play strategies which threaten to punish…

Computer Science and Game Theory · Computer Science 2024-12-17 Eshwar Ram Arunachaleswaran , Natalie Collina , Sampath Kannan , Aaron Roth , Juba Ziani

Signaling is an important topic in the study of asymmetric information in economic settings. In particular, the transparency of information available to a seller in an auction setting is a question of major interest. We introduce the study…

Computer Science and Game Theory · Computer Science 2012-04-26 Yuval Emek , Michal Feldman , Iftah Gamzu , Renato Paes Leme , Moshe Tennenholtz

Bidding in simultaneous auctions is challenging because an agent's value for a good in one auction may depend on the uncertain outcome of other auctions: the so-called exposure problem. Given the gap in understanding of general simultaneous…

Computer Science and Game Theory · Computer Science 2012-10-19 Michael P. Wellman , Eric Sodomka , Amy Greenwald

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
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