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We present an algorithm for computing pure-strategy epsilon-perfect Bayesian equilibria in sequential auctions with continuous action and value spaces. Importantly, our algorithm includes a verification phase that computes an upper bound on…

Computer Science and Game Theory · Computer Science 2025-02-19 Vinzenz Thoma , Vitor Bosshard , Sven Seuken

In economics, there are many ways to describe the interaction between a "seller" and a "buyer". The most common one, with which we interact almost every day, is selling for a fixed price. This option is perfect for selling a mass product,…

General Finance · Quantitative Finance 2024-07-10 O. A. Malafeyev , I. E. Khomenko

This paper studies Markov perfect equilibria in a repeated duopoly model where sellers choose algorithms. An algorithm is a mapping from the competitor's price to own price. Once set, algorithms respond quickly. Customers arrive randomly…

Theoretical Economics · Economics 2022-07-04 Rohit Lamba , Sergey Zhuk

Budgets play a significant role in real-world sequential auction markets such as those implemented by internet companies. To maximize the value provided to auction participants, spending is smoothed across auctions so budgets are used for…

Computer Science and Game Theory · Computer Science 2021-05-11 Vincent Conitzer , Christian Kroer , Eric Sodomka , Nicolas E. Stier-Moses

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

In this article we consider combinatorial markets with valuations only for singletons and pairs of buy/sell-orders for swapping two items in equal quantity. We provide an algorithm that permits polynomial time market-clearing and -pricing.…

Optimization and Control · Mathematics 2017-10-30 Johannes C. Müller , Sebastian Pokutta , Alexander Martin , Susanne Pape , Andrea Peter , Thomas Winter

Computing market equilibria is an important practical problem for market design, for example in fair division of items. However, computing equilibria requires large amounts of information (typically the valuation of every buyer for every…

Computer Science and Game Theory · Computer Science 2021-09-07 Christian Kroer , Alexander Peysakhovich , Eric Sodomka , Nicolas E. Stier-Moses

We propose a uniform approach for the design and analysis of prior-free competitive auctions and online auctions. Our philosophy is to view the benchmark function as a variable parameter of the model and study a broad class of functions…

Computer Science and Game Theory · Computer Science 2014-11-11 Ning Chen , Nick Gravin , Pinyan Lu

We provide an exact analytical solution of the Nash equilibrium for $k$- price auctions. We also introduce a new type of auction and demonstrate that it has fair solutions other than the second price auctions, therefore paving the way for…

Mathematical Finance · Quantitative Finance 2019-03-06 Martin Mihelich , Yan Shu

In the standard single-dimensional model of position auctions, bidders agree on the relative values of the positions and each of them submits a single bid that is interpreted in terms of these values. Motivated by current practice in…

Computer Science and Game Theory · Computer Science 2018-06-22 Paul Dütting , Felix Fischer , David C. Parkes

This paper investigates reverse auctions that involve continuous values of different types of goods, general nonconvex constraints, and second stage costs. We seek to design the payment rules and conditions under which coalitions of…

Computer Science and Game Theory · Computer Science 2021-07-14 Orcun Karaca , Pier Giuseppe Sessa , Neil Walton , Maryam Kamgarpour

I study symmetric competitions in which each player chooses an arbitrary distribution over a one-dimensional performance index, subject to a convex cost. I establish existence of a symmetric equilibrium, document various properties it must…

Theoretical Economics · Economics 2026-05-07 Mark Whitmeyer

One of the major drawbacks of the celebrated VCG auction is its low (or zero) revenue even when the agents have high value for the goods and a {\em competitive} outcome could have generated a significant revenue. A competitive outcome is…

Computer Science and Game Theory · Computer Science 2015-07-02 Gagan Goel , Mohammad Reza Khani , Renato Paes Leme

Combinatorial auctions are used to allocate resources in domains where bidders have complex preferences over bundles of goods. However, the behavior of bidders under different payment rules is not well understood, and there has been limited…

Computer Science and Game Theory · Computer Science 2022-06-09 Vitor Bosshard , Ye Wang , Sven Seuken

In many first-price auctions, bidders face considerable strategic uncertainty: They cannot perfectly anticipate the other bidders' bidding behavior. We propose a model in which bidders do not know the entire distribution of opponent bids…

Theoretical Economics · Economics 2022-03-30 Bernhard Kasberger

Motivated by recent research on combinatorial markets with endowed valuations by (Babaioff et al., EC 2018) and (Ezra et al., EC 2020), we introduce a notion of perturbation stability in Combinatorial Auctions (CAs) and study the extend to…

Computer Science and Game Theory · Computer Science 2023-09-06 Giannis Fikioris , Dimitris Fotakis

This paper examines knapsack auctions as a method to solve the knapsack problem with incomplete information, where object values are private and sizes are public. We analyze three auction types-uniform price (UP), discriminatory price (DP),…

Computer Science and Game Theory · Computer Science 2024-05-02 Peyman Khezr , Vijay Mohan , Lionel Page

Standard ad auction formats do not immediately extend to settings where multiple size configurations and layouts are available to advertisers. In these settings, the sale of web advertising space increasingly resembles a combinatorial…

Computer Science and Game Theory · Computer Science 2020-11-10 Rad Niazadeh , Jason Hartline , Nicole Immorlica , Mohammad Reza Khani , Brendan Lucier

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

We consider prophet inequalities for XOS and MPH-$k$ combinatorial auctions and give a simplified proof for the existence of static and anonymous item prices which recover the state-of-the-art competitive ratios. Our proofs make use of a…

Computer Science and Game Theory · Computer Science 2022-11-03 Alexander Braun , Thomas Kesselheim
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