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Related papers: Learning to bid in revenue-maximizing auctions

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Good economic mechanisms depend on the preferences of participants in the mechanism. For example, the revenue-optimal auction for selling an item is parameterized by a reserve price, and the appropriate reserve price depends on how much the…

Computer Science and Game Theory · Computer Science 2014-06-10 Shuchi Chawla , Jason Hartline , Denis Nekipelov

In this paper, we develop a new method for finding an optimal biddingstrategy in sequential auctions, using a dynamic programming technique. Theexisting method assumes that the utility of a user is represented in anadditive form. Thus, the…

Computer Science and Game Theory · Computer Science 2013-01-14 Hiromitsu Hattori , Makoto Yokoo , Yuko Sakurai , Toramatsu Shintani

Recently the online advertising market has exhibited a gradual shift from second-price auctions to first-price auctions. Although there has been a line of works concerning online bidding strategies in first-price auctions, it still remains…

Computer Science and Game Theory · Computer Science 2022-05-31 Rui Ai , Chang Wang , Chenchen Li , Jinshan Zhang , Wenhan Huang , Xiaotie Deng

Developing efficient sequential bidding strategies for repeated auctions is an important practical challenge in various marketing tasks. In this setting, the bidding agent obtains information, on both the value of the item at sale and the…

Machine Learning · Computer Science 2021-03-01 Juliette Achddou , Olivier Cappé , Aurélien Garivier

First-price auctions have very recently swept the online advertising industry, replacing second-price auctions as the predominant auction mechanism on many platforms. This shift has brought forth important challenges for a bidder: how…

Machine Learning · Computer Science 2025-09-26 Yanjun Han , Zhengyuan Zhou , Aaron Flores , Erik Ordentlich , Tsachy Weissman

We revisit the problem of designing the profit-maximizing single-item auction, solved by Myerson in his seminal paper for the case in which bidder valuations are independently distributed. We focus on general joint distributions, seeking…

Computer Science and Game Theory · Computer Science 2012-05-15 Christos Papadimitriou , George Pierrakos

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

In practice, most auction mechanisms are not strategy-proof, so equilibrium analysis is required to predict bidding behavior. In many auctions, though, an exact equilibrium is not known and one would like to understand whether -- manually…

Computer Science and Game Theory · Computer Science 2024-08-22 Fabian R. Pieroth , Tuomas Sandholm

With the increasing use of auctions in online advertising, there has been a large effort to study seller revenue maximization, following Myerson's seminal work, both theoretically and practically. We take the point of view of the buyer in…

Computer Science and Game Theory · Computer Science 2019-03-27 Marc Abeille , Clément Calauzènes , Noureddine El Karoui , Thomas Nedelec , Vianney Perchet

We study reserve price optimization in multi-phase second price auctions, where the seller's prior actions affect the bidders' later valuations through a Markov Decision Process (MDP). Compared to the bandit setting in existing works, the…

Machine Learning · Computer Science 2026-03-04 Rui Ai , Boxiang Lyu , Zhaoran Wang , Zhuoran Yang , Michael I. Jordan

Designing truthful, revenue maximizing auctions is a core problem of auction design. Multi-item settings have long been elusive. Recent work (arXiv:1706.03459) introduces effective deep learning techniques to find such auctions for the…

Computer Science and Game Theory · Computer Science 2021-04-02 Daniel Reusche , Nicolás Della Penna

In this work, we investigate the online learning problem of revenue maximization in ad auctions, where the seller needs to learn the click-through rates (CTRs) of each ad candidate and charge the price of the winner through a pay-per-click…

Information Retrieval · Computer Science 2024-03-05 Zhe Feng , Christopher Liaw , Zixin Zhou

One of the most celebrated results in mechanism design is Myerson's characterization of the revenue optimal auction for selling a single item. However, this result relies heavily on the assumption that buyers are indifferent to risk. In…

Computer Science and Game Theory · Computer Science 2018-10-08 Evdokia Nikolova , Emmanouil Pountourakis , Ger Yang

The Maker Protocol is a decentralized finance application that enables collateralized lending. The application uses open-bid, second-price auctions to complete its loan liquidation process. In this paper, we develop a bidding function for…

Trading and Market Microstructure · Quantitative Finance 2021-05-27 Michael Darlin , Nikolaos Papadis , Leandros Tassiulas

This paper studies optimal auction design when valuations depend endogenously on post-auction collaboration between the seller and the winning bidder. Both parties exert non-contractible efforts after the auction, generating a double moral…

Theoretical Economics · Economics 2026-04-21 Dazhong Wang , Ruqu Wang , Xinyi Xu

In this paper, we analyze a natural learning algorithm for uniform pacing of advertising budgets, equipped to adapt to varying ad sale platform conditions. On the demand side, advertisers face a fundamental technical challenge in automating…

Computer Science and Game Theory · Computer Science 2022-11-14 MohammadTaghi Hajiaghayi , Max Springer

Algorithms increasingly automate bidding in online auctions, raising concerns about tacit bid suppression and revenue shortfalls. Prior work identifies individual mechanisms behind algorithmic bid suppression, but it remains unclear which…

General Economics · Economics 2026-03-24 Pranjal Rawat

In classic auction theory, reserve prices are known to be effective for improving revenue for the auctioneer against quasi-linear utility maximizing bidders. The introduction of reserve prices, however, usually do not help improve total…

Computer Science and Game Theory · Computer Science 2021-11-05 Santiago Balseiro , Yuan Deng , Jieming Mao , Vahab Mirrokni , Song Zuo

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

We investigate revenue guarantees for auction mechanisms in a model where a distribution is specified for each bidder, but only some of the distributions are correct. The subset of bidders whose distribution is correctly specified…

Computer Science and Game Theory · Computer Science 2020-07-22 Makis Arsenis , Odysseas Drosis , Robert Kleinberg
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