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In this paper, we investigate the computation of second-price pacing equilibria (SPPEs), a foundational model in online advertising auctions. We present a polynomial-time algorithm for computing exact SPPEs in instances with a constant…

Computer Science and Game Theory · Computer Science 2026-05-12 Yiyang Huang , Yonglei Yan , Zihe Wang , Zhengyang Liu

The notion that economies should normally be in equilibrium is by now well-established; equally well-established is that economies are almost never precisely in equilibrium. Using a very general formulation, we show that under dynamics that…

General Finance · Quantitative Finance 2012-02-28 Eric Kemp-Benedict

In a multiple-object auction, every bidder tries to win as many objects as possible with a bidding algorithm. This paper studies position-randomized auctions, which form a special class of multiple-object auctions where a bidding algorithm…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Yuyu Chen , Ming-Yang Kao , Hsueh-I Lu

Auto-bidding is an area of increasing importance in the domain of online advertising. We study the problem of designing auctions in an auto-bidding setting with the goal of maximizing welfare at system equilibrium. Previous results showed…

Computer Science and Game Theory · Computer Science 2022-04-26 Aranyak Mehta

Motivated by online advertising auctions, we study auction design in repeated auctions played by simple Artificial Intelligence algorithms (Q-learning). We find that first-price auctions with no additional feedback lead to tacit-collusive…

Theoretical Economics · Economics 2022-02-15 Martino Banchio , Andrzej Skrzypacz

We compute equilibrium strategies in multi-stage games with continuous signal and action spaces as they are widely used in the management sciences and economics. Examples include sequential sales via auctions, multi-stage elimination…

Computer Science and Game Theory · Computer Science 2024-07-23 Fabian R. Pieroth , Nils Kohring , Martin Bichler

We study the price of anarchy of the generalized second-price auction where bidders are value maximizers (i.e., autobidders). We show that in general the price of anarchy can be as bad as $0$. For comparison, the price of anarchy of running…

Computer Science and Game Theory · Computer Science 2023-10-06 Yuan Deng , Mohammad Mahdian , Jieming Mao , Vahab Mirrokni , Hanrui Zhang , Song Zuo

We study two standard multi-unit auction formats for allocating multiple units of a single good to multi-demand bidders. The first one is the Discriminatory Auction, which charges every winner his winning bids. The second is the Uniform…

Computer Science and Game Theory · Computer Science 2016-05-02 Bart de Keijzer , Evangelos Markakis , Guido Schäfer , Orestis Telelis

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

The convergence properties of learning dynamics in repeated auctions is a timely and important question, with numerous applications in, e.g., online advertising markets. This work focuses on repeated first-price auctions where bidders with…

Computer Science and Game Theory · Computer Science 2025-08-21 Xiaotie Deng , Xinyan Hu , Tao Lin , Weiqiang Zheng

We study the efficiency of simple auctions in the presence of complements. [DMSW15] introduced the single-bid auction, and showed that it has a price of anarchy (PoA) of $O(\log m)$ for complement-free (i.e., subadditive) valuations. Prior…

Computer Science and Game Theory · Computer Science 2016-09-06 Michal Feldman , Ophir Friedler , Jamie Morgenstern , Guy Reiner

We study the price competition in a duopoly with an arbitrary number of buyers. Each seller can offer multiple units of a commodity depending on the availability of the commodity which is random and may be different for different sellers.…

Computer Science and Game Theory · Computer Science 2016-11-15 Mohammad Hassan Lotfi , Saswati Sarkar

We study revenue optimization in a repeated auction between a single seller and a single buyer. Traditionally, the design of repeated auctions requires strong modeling assumptions about the bidder behavior, such as it being myopic, infinite…

Computer Science and Game Theory · Computer Science 2019-03-12 Shipra Agrawal , Constantinos Daskalakis , Vahab Mirrokni , Balasubramanian Sivan

In a recent publication, using a simple two-period model, which is already capable to capture essential non-convex multiperiod bids, Richstein et al. have shown that in the case of optimal bidding, multi-part bidding always ensures a higher…

General Economics · Economics 2025-10-09 Dávid Csercsik , Mihály András Vághy

In most of microeconomic theory, consumers are assumed to exhibit decreasing marginal utilities. This paper considers combinatorial auctions among such submodular buyers. The valuations of such buyers are placed within a hierarchy of…

Computer Science and Game Theory · Computer Science 2007-05-23 Benny Lehmann , Daniel Lehmann , Noam Nisan

We study the Bayesian coarse correlated equilibrium (BCCE) of continuous and discretised first-price and all-pay auctions under the standard symmetric independent private-values model. Our study is motivated by the question of how the…

Computer Science and Game Theory · Computer Science 2024-11-19 Mete Şeref Ahunbay , Martin Bichler

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

Having fixed capacities, homogeneous products and price sensitive customer purchase decision are primary distinguishing characteristics of numerous revenue management systems. Even with two or three rivals, competition is still highly…

Theoretical Economics · Economics 2022-08-08 Niloofar Fadavi

In a two-round auction, a subset of bidders is selected (probabilistically), according to their bids in the first round, for the second round, where they can increase their bids. We formalize the two-round auction model, restricting the…

Computer Science and Game Theory · Computer Science 2023-12-08 Chulong Zhong , Xiang Yan , Yuyi Wang , Shuangping Huang , Jin Zhong

The all-pay auction, a classic competitive model, is widely applied in scenarios such as political elections, sports competitions, and research and development, where all participants pay their bids regardless of winning or losing. However,…

Theoretical Economics · Economics 2025-07-24 Yan Liu , Ying Qin , Zihe Wang