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We investigate the power of randomness in the context of a fundamental Bayesian optimal mechanism design problem--a single seller aims to maximize expected revenue by allocating multiple kinds of resources to "unit-demand" agents with…

Computer Science and Game Theory · Computer Science 2010-02-24 Shuchi Chawla , David Malec , Balasubramanian Sivan

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

We consider the problem of repeatedly auctioning a single item to multiple i.i.d buyers who each use a no-regret learning algorithm to bid over time. In particular, we study the seller's optimal revenue, if they know that the buyers are…

Computer Science and Game Theory · Computer Science 2023-07-11 Linda Cai , S. Matthew Weinberg , Evan Wildenhain , Shirley Zhang

We provide a near-optimal, computationally efficient algorithm for the unit-demand pricing problem, where a seller wants to price n items to optimize revenue against a unit-demand buyer whose values for the items are independently drawn…

Computer Science and Game Theory · Computer Science 2014-10-28 Yang Cai , Constantinos Daskalakis

Myerson derived a simple and elegant solution to the single-parameter revenue-maximization problem in his seminal work on optimal auction design assuming the usual model of quasi-linear utilities. In this paper, we consider a slight…

Computer Science and Game Theory · Computer Science 2016-01-27 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

$\newcommand{\eps}{\varepsilon}$We present an auction algorithm using multiplicative instead of constant weight updates to compute a $(1-\eps)$-approximate maximum weight matching (MWM) in a bipartite graph with $n$ vertices and $m$ edges…

Data Structures and Algorithms · Computer Science 2024-01-25 Da Wei Zheng , Monika Henzinger

We consider a dynamic mechanism design problem where an auctioneer sells an indivisible good to groups of buyers in every round, for a total of $T$ rounds. The auctioneer aims to maximize their discounted overall revenue while adhering to a…

Computer Science and Game Theory · Computer Science 2024-10-04 Alireza Fallah , Michael I. Jordan , Annie Ulichney

Local volatility is an important quantity in option pricing, portfolio hedging, and risk management. It is not directly observable from the market; hence calibrations of local volatility models are necessary using observable market data.…

Applications · Statistics 2022-05-18 Kai Yin , Anirban Mondal

The optimal pricing problem is a fundamental problem that arises in combinatorial auctions. Suppose that there is one seller who has indivisible items and multiple buyers who want to purchase a combination of the items. The seller wants to…

Computer Science and Game Theory · Computer Science 2016-11-24 Takanori Maehara , Yasushi Kawase , Hanna Sumita , Katsuya Tono , Ken-ichi Kawarabayashi

In many social computing applications such as online Q&A forums, the best contribution for each task receives some high reward, while all remaining contributions receive an identical, lower reward irrespective of their actual qualities.…

Computer Science and Game Theory · Computer Science 2015-03-20 Arpita Ghosh , Patrick Hummel

Auctions are important mechanisms extensively implemented in various markets, e.g., search engines' keyword auctions, antique auctions, etc. Finding an optimal auction mechanism is extremely difficult due to the constraints of imperfect…

Machine Learning · Computer Science 2025-07-28 Jiayin Liu , Chenglong Zhang

A fundamental economic question is that of designing revenue-maximizing mechanisms in dynamic environments. This paper considers a simple yet compelling market model to tackle this question, where forward-looking buyers arrive at the market…

Theoretical Economics · Economics 2024-10-16 Jose Correa , Andres Cristi , Laura Vargas Koch

We consider the optimization problem of a multi-resource, multi-unit VCG auction that produces an optimal, i.e., non-approximated, social welfare. We present an algorithm that solves this optimization problem with pseudo-polynomial…

Computer Science and Game Theory · Computer Science 2019-05-23 Liran Funaro , Orna Agmon Ben-Yehuda , Assaf Schuster

We study gains from trade in multi-dimensional two-sided markets. Specifically, we focus on a setting with $n$ heterogeneous items, where each item is owned by a different seller $i$, and there is a constrained-additive buyer with…

Computer Science and Game Theory · Computer Science 2022-03-15 Yang Cai , Kira Goldner , Steven Ma , Mingfei Zhao

The existing literature on optimal auctions focuses on optimizing the expected revenue of the seller, and is appropriate for risk-neutral sellers. In this paper, we identify good mechanisms for risk-averse sellers. As is standard in the…

Computer Science and Game Theory · Computer Science 2010-04-02 Mukund Sundararajan , Qiqi Yan

We construct prior-free auctions with constant-factor approximation guarantees with ordered bidders, in both unlimited and limited supply settings. We compare the expected revenue of our auctions on a bid vector to the monotone price…

Computer Science and Game Theory · Computer Science 2012-12-13 Elias Koutsoupias , Stefano Leonardi , Tim Roughgarden

The competition complexity of an auction setting is the number of additional bidders needed such that the simple mechanism of selling items separately (with additional bidders) achieves greater revenue than the optimal but complex…

Computer Science and Game Theory · Computer Science 2024-03-07 Mahsa Derakhshan , Emily Ryu , S. Matthew Weinberg , Eric Xue

We study the problem of learning revenue-optimal multi-bidder auctions from samples when the samples of bidders' valuations can be adversarially corrupted or drawn from distributions that are adversarially perturbed. First, we prove tight…

Computer Science and Game Theory · Computer Science 2021-07-14 Wenshuo Guo , Michael I. Jordan , Manolis Zampetakis

Internet ad auctions have evolved from a few lines of text to richer informational layouts that include images, sitelinks, videos, etc. Ads in these new formats occupy varying amounts of space, and an advertiser can provide multiple…

Computer Science and Game Theory · Computer Science 2022-06-08 Gagan Aggarwal , Kshipra Bhawalkar , Aranyak Mehta , Divyarthi Mohan , Alexandros Psomas

Classical Bayesian mechanism design relies on the common prior assumption, but such prior is often not available in practice. We study the design of prior-independent mechanisms that relax this assumption: the seller is selling an…

Theoretical Economics · Economics 2024-12-12 Jerry Anunrojwong , Santiago R. Balseiro , Omar Besbes