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This paper proposes a simple descriptive model of discrete-time double auction markets for divisible assets. As in the classical models of exchange economies, we consider a finite set of agents described by their initial endowments and…

Theoretical Economics · Economics 2021-01-07 Teemu Pennanen

Consider Myerson's optimal auction with respect to an inaccurate prior, e.g., estimated from data, which is an underestimation of the true value distribution. Can the auctioneer expect getting at least the optimal revenue w.r.t. the…

Computer Science and Game Theory · Computer Science 2022-11-10 Ziyun Chen , Zhiyi Huang , Dorsa Majdi , Zipeng Yan

In this paper, we study sequential auctions with two budget constrained bidders and any number of identical items. All prior results on such auctions consider only two items. We construct a canonical outcome of the auction that is the only…

Computer Science and Game Theory · Computer Science 2012-09-11 Zhiyi Huang , Nikhil R. Devanur , David Malec

We consider the problem of designing revenue-optimal auctions for selling two items and bidders' valuations are independent among bidders but negatively correlated among items. In this paper, we obtain the closed-form optimal auction for…

Computer Science and Game Theory · Computer Science 2016-06-03 Pingzhong Tang , Zihe Wang

We study equilibria in two-buyer sequential second-price (or first-price) auctions for identical goods. Buyers have weakly decreasing incremental values, and we make a behavioural no-overbidding assumption: the buyers do not bid above their…

Computer Science and Game Theory · Computer Science 2020-06-08 Mete Şeref Ahunbay , Brendan Lucier , Adrian Vetta

When agents with independent priors bid for a single item, Myerson's optimal auction maximizes expected revenue, whereas Vickrey's second-price auction optimizes social welfare. We address the natural question of trade-offs between the two…

Computer Science and Game Theory · Computer Science 2012-05-15 Ilias Diakonikolas , Christos Papadimitriou , George Pierrakos , Yaron Singer

This paper studies markets where a set of indivisible items is sold to bidders with quasilinear, unit-demand valuations, subject to a hard budget constraint. Without financial constraints the well-known assignment market model of Shapley…

Computer Science and Game Theory · Computer Science 2025-07-16 Eleni Batziou , Martin Bichler , Maximilian Fichtl

In digital goods auctions, there is an auctioneer who sells an item with unlimited supply to a set of potential buyers, and the objective is to design truthful auction to maximize the total profit of the auctioneer. Motivated from an…

Computer Science and Game Theory · Computer Science 2011-07-27 Nick Gravin , Pinyan Lu

We consider two sided matching markets consisting of agents with non-transferable utilities; agents from the opposite sides form matching pairs (e.g., buyers-sellers) and negotiate the terms of their math which may include a monetary…

Computer Science and Game Theory · Computer Science 2012-12-05 Saeed Alaei , Kamal Jain , Azarakhsh Malekian

We study the classic bilateral trade setting. Myerson and Satterthwaite show that there is no Bayesian incentive compatible and budget-balanced mechanism that obtains the gains from trade of the first-best mechanism. Consider the…

Computer Science and Game Theory · Computer Science 2021-11-16 Moshe Babaioff , Shahar Dobzinski , Ron Kupfer

In this paper, we revisit the common claim that double auctions necessarily generate competitive equilibria. We begin by observing that competitive equilibrium has some counterintuitive implications: specifically, it predicts that monotone…

Theoretical Economics · Economics 2022-09-19 Itzhak Rasooly

This paper deals with two-sided matching market with two disjoint sets, i.e. the set of buyers and the set of sellers. Each seller can trade with at most with one buyer and vice versa. Money is transferred from sellers to buyers for an…

Computer Science and Game Theory · Computer Science 2023-06-22 Yasir Ali , Asma Javaid

In this paper, we present a new model and two mechanisms for auctions in two-sided markets of buyers and sellers, where budget constraints are imposed on buyers. Our model incorporates polymatroidal environments, and is applicable to a wide…

Computer Science and Game Theory · Computer Science 2018-09-17 Hiroshi Hirai , Ryosuke Sato

Double sided auctions are widely used in financial markets to match demand and supply. Prior works on double sided auctions have focused primarily on single quantity trade requests. We extend various notions of double sided auctions to…

Computer Science and Game Theory · Computer Science 2021-04-20 Raja Natarajan , Suneel Sarswat , Abhishek Kr Singh

The enhanced competition paradigm is an attempt at bridging the gap between simple and optimal auctions. In this line of work, given an auction setting with $m$ items and $n$ bidders, the goal is to find the smallest $n' \geq n$ such that…

Computer Science and Game Theory · Computer Science 2021-05-19 Linda Cai , Raghuvansh R. Saxena

We study the classic single-item auction setting of Myerson, but under the assumption that the buyers' values for the item are distributed over finite supports. Using strong LP duality and polyhedral theory, we rederive various key results…

Computer Science and Game Theory · Computer Science 2025-01-27 Yiannis Giannakopoulos , Johannes Hahn

Competitive equilibrium from equal incomes (CEEI) is a classic solution to the problem of fair and efficient allocation of goods [Foley'67, Varian'74]. Every agent receives an equal budget of artificial currency with which to purchase…

Computer Science and Game Theory · Computer Science 2018-09-26 Moshe Babaioff , Noam Nisan , Inbal Talgam-Cohen

This paper considers Bayesian revenue maximization in the $k$-unit setting, where a monopolist seller has $k$ copies of an indivisible item and faces $n$ unit-demand buyers (whose value distributions can be non-identical). Four basic…

Computer Science and Game Theory · Computer Science 2022-07-22 Yaonan Jin , Shunhua Jiang , Pinyan Lu , Hengjie Zhang

We study a seller who sells a single good to multiple bidders with uncertainty over the joint distribution of bidders' valuations, as well as bidders' higher-order beliefs about their opponents. The seller only knows the (possibly…

Theoretical Economics · Economics 2022-02-16 Ethan Che

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