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The design of revenue-maximizing combinatorial auctions, i.e. multi-item auctions over bundles of goods, is one of the most fundamental problems in computational economics, unsolved even for two bidders and two items for sale. In the…

Machine Learning · Computer Science 2016-06-15 Maria-Florina Balcan , Tuomas Sandholm , Ellen Vitercik

Calibration is a basic property for prediction systems, and algorithms for achieving it are well-studied in both statistics and machine learning. In many applications, however, the predictions are used to make decisions that select which…

Computer Science and Game Theory · Computer Science 2012-11-19 H. Brendan McMahan , Omkar Muralidharan

Since the 1990s spectrum auctions have been implemented world-wide. This has provided for a practical examination of an assortment of auction mechanisms and, amongst these, two simultaneous ascending price auctions have proved to be…

Computer Science and Game Theory · Computer Science 2015-07-24 Nicolas Bousquet , Yang Cai , Christoph Hunkenschröder , Adrian Vetta

The commercialization of LLM applications is the next frontier in online advertising, with LLM-native advertising emerging as a promising paradigm by integrating ads into LLM-generated content. However, classic mechanisms are no longer…

Computer Science and Game Theory · Computer Science 2026-04-28 Chujie Zhao , Qun Hu , Shiping Song , Dagui Chen , Han Zhu , Jian Xu , Bo Zheng

Cloud service providers typically provide different types of virtual machines (VMs) to cloud users with various requirements. Thanks to its effectiveness and fairness, auction has been widely applied in this heterogeneous resource…

Cryptography and Security · Computer Science 2020-01-06 Tianjiao Ni , Zhili Chen , Lin Chen , Hong Zhong , Shun Zhang , Yan Xu

The competitive auction was first proposed by Goldberg, Hartline, and Wright. In their paper, they introduce the competitive analysis framework of online algorithm designing into the traditional revenue-maximizing auction design problem.…

Computer Science and Game Theory · Computer Science 2024-06-19 Pinyan Lu , Zongqi Wan , Jialin Zhang

As distributed energy resources (DERs) proliferate, future power system will need new market platforms enabling prosumers to trade various electricity and grid-support products. However, prosumers often exhibit complex, product…

Systems and Control · Electrical Eng. & Systems 2026-03-12 Shobhit Singhal , Lesia Mitridati

Algorithmic Mechanism Design attempts to marry computation and incentives, mainly by leveraging monetary transfers between designer and selfish agents involved. This is principally because in absence of money, very little can be done to…

Computer Science and Game Theory · Computer Science 2013-10-02 Dimitris Fotakis , Piotr Krysta , Carmine Ventre

Many important resource allocation problems involve the combinatorial assignment of items, e.g., auctions or course allocation. Because the bundle space grows exponentially in the number of items, preference elicitation is a key challenge…

Computer Science and Game Theory · Computer Science 2023-03-14 Jakob Weissteiner , Jakob Heiss , Julien Siems , Sven Seuken

We study an auction setting in which bidders bid for placement of their content within a summary generated by a large language model (LLM), e.g., an ad auction in which the display is a summary paragraph of multiple ads. This generalizes…

Computer Science and Game Theory · Computer Science 2024-04-15 Kumar Avinava Dubey , Zhe Feng , Rahul Kidambi , Aranyak Mehta , Di Wang

Previous works suggested the use of Branch and Bound techniques for finding the optimal allocation in (multi-unit) combinatorial auctions. They remarked that Linear Programming could provide a good upper-bound to the optimal allocation, but…

Computer Science and Game Theory · Computer Science 2007-05-23 Rica Gonen , Daniel Lehmann

We cast the problem of combinatorial auction design in a Bayesian framework in order to incorporate prior information into the auction process and minimize the number of rounds to convergence. We first develop a generative model of agent…

Computer Science and Game Theory · Computer Science 2018-11-19 Gianluca Brero , Sébastien Lahaie

Identifying high-revenue mechanisms that are both dominant strategy incentive compatible (DSIC) and individually rational (IR) is a fundamental challenge in auction design. While theoretical approaches have encountered bottlenecks in…

Computer Science and Game Theory · Computer Science 2024-07-23 Zhijian Duan , Haoran Sun , Yichong Xia , Siqiang Wang , Zhilin Zhang , Chuan Yu , Jian Xu , Bo Zheng , Xiaotie Deng

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 auction mechanisms for AI-generated content, focusing on applications like ad creative generation. In our model, agents' preferences over stochastically generated content are encoded as large language models (LLMs). We…

Computer Science and Game Theory · Computer Science 2024-07-03 Paul Duetting , Vahab Mirrokni , Renato Paes Leme , Haifeng Xu , Song Zuo

Auctions are a vital economic mechanism used to determine the market value of goods or services through competitive bidding within a specific framework. However, much of the current research primarily focuses on the bidding algorithms used…

Computational Engineering, Finance, and Science · Computer Science 2025-10-30 Jie Sun , Tianyu Zhang , Houcheng Jiang , Kexin Huang , Xiang Shu , Zhibo Zhu , Lintao Ma , Xingyu Lu , Jun Zhou , Junkang Wu , Chi Luo , An Zhang , Junkang Wu , Jiancan Wu , Xiang Wang

Mechanism design, a branch of economics, aims to design rules that can autonomously achieve desired outcomes in resource allocation and public decision making. The research on mechanism design using machine learning is called automated…

Computer Science and Game Theory · Computer Science 2024-12-17 Tsuyoshi Suehara , Koh Takeuchi , Hisashi Kashima , Satoshi Oyama , Yuko Sakurai , Makoto Yokoo

Core-selecting combinatorial auctions are popular auction designs that constrain prices to eliminate the incentive for any group of bidders -- with the seller -- to renegotiate for a better deal. They help overcome the low-revenue issues of…

Computer Science and Game Theory · Computer Science 2025-05-21 Siddharth Prasad , Maria-Florina Balcan , Tuomas Sandholm

Combinatorial Auctions are a central problem in Algorithmic Mechanism Design: pricing and allocating goods to buyers with complex preferences in order to maximize some desired objective (e.g., social welfare, revenue, or profit). The…

Computer Science and Game Theory · Computer Science 2015-03-19 Avrim Blum , Anupam Gupta , Yishay Mansour , Ankit Sharma

Designing an incentive compatible auction that maximizes expected revenue is a central problem in Auction Design. Theoretical approaches to the problem have hit some limits in the past decades and analytical solutions are known for only a…

Computer Science and Game Theory · Computer Science 2021-10-26 Jad Rahme , Samy Jelassi , Joan Bruna , S. Matthew Weinberg