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We model an informed agent with information about the future value of an asset trying to maximize profits when subjected to a transaction cost as well as a market maker tasked with setting fair transaction prices. In a single auction model,…

Trading and Market Microstructure · Quantitative Finance 2020-07-29 Weston Barger , Ryan Donnelly

In practice, most mechanisms for selling, buying, matching, voting, and so on are not incentive compatible. We present techniques for estimating how far a mechanism is from incentive compatible. Given samples from the agents' type…

Computer Science and Game Theory · Computer Science 2023-12-12 Maria-Florina Balcan , Tuomas Sandholm , Ellen Vitercik

Auction design for the modern advertising market has gained significant prominence in the field of game theory. With the recent rise of auto-bidding tools, an increasing number of advertisers in the market are utilizing these tools for…

Computer Science and Game Theory · Computer Science 2024-12-31 Changfeng Xu , Chao Peng , Chenyang Xu , Zhengfeng Yang

We consider the sample complexity of revenue maximization for multiple bidders in unrestricted multi-dimensional settings. Specifically, we study the standard model of $n$ additive bidders whose values for $m$ heterogeneous items are drawn…

Computer Science and Game Theory · Computer Science 2021-04-13 Yannai A. Gonczarowski , S. Matthew Weinberg

We study the problem of setting a price for a potential buyer with a valuation drawn from an unknown distribution $D$. The seller has "data"' about $D$ in the form of $m \ge 1$ i.i.d. samples, and the algorithmic challenge is to use these…

Computer Science and Game Theory · Computer Science 2015-02-12 Zhiyi Huang , Yishay Mansour , Tim Roughgarden

We consider multi-agent decision making, where each agent optimizes its cost function subject to constraints. Agents' actions belong to a compact convex Euclidean space and the agents' cost functions are coupled. We propose a distributed…

Optimization and Control · Mathematics 2016-12-01 Tatiana Tatarenko , Maryam Kamgarpour

Continually arriving information is communicated through a network of $n$ agents, with the value of information to the $j$'th recipient being a decreasing function of $j/n$, and communication costs paid by recipient. Regardless of details…

Probability · Mathematics 2010-05-27 David J. Aldous

We introduce draft auctions, which is a sequential auction format where at each iteration players bid for the right to buy items at a fixed price. We show that draft auctions offer an exponential improvement in social welfare at equilibrium…

Computer Science and Game Theory · Computer Science 2013-11-13 Nikhil R. Devanur , Jamie Morgenstern , Vasilis Syrgkanis

We study the problem of finding the optimal bidding strategy for an advertiser in a multi-platform auction setting. The competition on a platform is captured by a value and a cost function, mapping bidding strategies to value and cost…

Computer Science and Game Theory · Computer Science 2025-02-27 Gagan Aggarwal , Anupam Gupta , Xizhi Tan , Mingfei Zhao

We study the learning problem of revealed preference in a stochastic setting: a learner observes the utility-maximizing actions of a set of agents whose utility follows some unknown distribution, and the learner aims to infer the…

Optimization and Control · Mathematics 2022-06-06 John R. Birge , Xiaocheng Li , Chunlin Sun

We study the problem of computing an approximate Nash equilibrium of a game whose strategy space is continuous without access to gradients of the utility function. Such games arise, for example, when players' strategies are represented by…

Computer Science and Game Theory · Computer Science 2025-10-28 Carlos Martin , Tuomas Sandholm

We present the first analysis of Fisher markets with buyers that have budget-additive utility functions. Budget-additive utilities are elementary concave functions with numerous applications in online adword markets and revenue optimization…

Computer Science and Game Theory · Computer Science 2016-05-03 Xiaohui Bei , Jugal Garg , Martin Hoefer , Kurt Mehlhorn

We initiate the study of how auction design affects the division of surplus among buyers. We propose a parsimonious measure for equity and apply it to the family of standard auctions for homogeneous goods. Our surplus-equitable mechanism is…

Theoretical Economics · Economics 2024-11-14 Simon Finster , Patrick Loiseau , Simon Mauras , Mathieu Molina , Bary Pradelski

We study the Price of Anarchy of simultaneous first-price auctions for buyers with submodular and subadditive valuations. The current best upper bounds for the Bayesian Price of Anarchy of these auctions are e/(e-1) [Syrgkanis and Tardos…

Computer Science and Game Theory · Computer Science 2015-08-06 George Christodoulou , Annamária Kovács , Alkmini Sgouritsa , Bo Tang

Agents learn about a changing state using private signals and their neighbors' past estimates of the state. We present a model in which Bayesian agents in equilibrium use neighbors' estimates simply by taking weighted sums with…

Theoretical Economics · Economics 2022-11-28 Krishna Dasaratha , Benjamin Golub , Nir Hak

The transition of display ad exchanges from second-price auctions (SPA) to first-price auctions (FPA) has raised questions about its impact on revenue. Auction theory predicts the revenue equivalence between these two auction formats.…

Computer Science and Game Theory · Computer Science 2024-12-04 Martin Bichler , Alok Gupta , Matthias Oberlechner

Incorporating budget constraints into the analysis of auctions has become increasingly important, as they model practical settings more accurately. The social welfare function, which is the standard measure of efficiency in auctions, is…

Computer Science and Game Theory · Computer Science 2015-11-05 Yossi Azar , Michal Feldman , Nick Gravin , Alan Roytman

We introduce several new estimation methods that leverage shape constraints in auction models to estimate various objects of interest, including the distribution of a bidder's valuations, the bidder's ex ante expected surplus, and the…

Econometrics · Economics 2019-12-17 Joris Pinkse , Karl Schurter

I study a game of strategic exploration with private payoffs and public actions in a Bayesian bandit setting. In particular, I look at cascade equilibria, in which agents switch over time from the risky action to the riskless action only…

Theoretical Economics · Economics 2022-05-13 Aroon Narayanan

Online advertising banners are sold in real-time through auctions.Typically, the more banners a user is shown, the smaller the marginalvalue of the next banner for this user is. This fact can be detected bybasic ML models, that can be used…

Computer Science and Game Theory · Computer Science 2024-07-16 Benjamin Heymann , Rémi Chan--Renous-Legoubin , Alexandre Gilotte