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We consider a model of bilateral trade with private values. The value of the buyer and the cost of the seller are jointly distributed. The true joint distribution is unknown to the designer, however, the marginal distributions of the value…

Theoretical Economics · Economics 2023-01-02 Komal Malik

We study the problem of approximate social welfare maximization (without money) in one-sided matching problems when agents have unrestricted cardinal preferences over a finite set of items. Random priority is a very well-known…

Computer Science and Game Theory · Computer Science 2014-05-07 Aris Filos-Ratsikas , Søren Kristoffer Stiil Frederiksen , Jie Zhang

Consider a barter exchange problem over a finite set of agents, where each agent owns an item and is also associated with a (privately known) wish list of items belonging to the other agents. An outcome of the problem is a (re)allocation of…

Computer Science and Game Theory · Computer Science 2024-10-10 Yuval Emek , Matan-El Shpiro

We design simple mechanisms to approximate the Gains from Trade (GFT) in two-sided markets with multiple unit-supply sellers and multiple unit-demand buyers. A classical impossibility result by Myerson and Satterthwaite showed that even…

Computer Science and Game Theory · Computer Science 2017-06-20 Johannes Brustle , Yang Cai , Fa Wu , Mingfei Zhao

We consider the impact of fairness requirements on the social efficiency of truthful mechanisms for trade, focusing on Bayesian bilateral-trade settings. Unlike the full information case in which all gains-from-trade can be realized and…

Computer Science and Game Theory · Computer Science 2025-02-27 Moshe Babaioff , Yiding Feng , Noam Manaker Morag

Bilateral trade, a fundamental topic in economics, models the problem of intermediating between two strategic agents, a seller and a buyer, willing to trade a good for which they hold private valuations. In this paper, we cast the bilateral…

Computer Science and Game Theory · Computer Science 2021-09-28 Nicolò Cesa-Bianchi , Tommaso Cesari , Roberto Colomboni , Federico Fusco , Stefano Leonardi

We study the problem of allocating indivisible items on a path among agents. The objective is to find a fair and efficient allocation in which each agent's bundle forms a contiguous block on the line. We say that an instance is \emph{$(a,…

Computer Science and Game Theory · Computer Science 2025-01-14 Yasushi Kawase , Bodhayan Roy , Mohammad Azharuddin Sanpui

We consider budget feasible mechanisms for procurement auctions with additive valuation functions. For the divisible case, where agents can be allocated fractionally, there exists an optimal mechanism with approximation guarantee $e/(e-1)$…

Computer Science and Game Theory · Computer Science 2022-09-02 Sophie Klumper , Guido Schäfer

We study the efficiency guarantees in the simple auction environment where the auctioneer has one unit of divisible good to be distributed among a number of budget constrained agents. With budget constraints, the social welfare cannot be…

Computer Science and Game Theory · Computer Science 2015-02-16 Pinyan Lu , Tao Xiao

Fair allocation of indivisible goods studies allocating $m$ goods among $n$ agents in a fair manner. While fairness is a fundamental requirement in many real-world applications, it often conflicts with (economic) efficiency. This raises a…

Computer Science and Game Theory · Computer Science 2025-06-03 Xiaolin Bu , Zihao Li , Shengxin Liu , Jiaxin Song , Biaoshuai Tao

We examine information structure design, also called "persuasion" or "signaling", in the presence of a constraint on the amount of communication. We focus on the fundamental setting of bilateral trade, which in its simplest form involves a…

Computer Science and Game Theory · Computer Science 2020-03-09 Shaddin Dughmi , David Kempe , Ruixin Qiang

A seminal theorem of Myerson and Satterthwaite (1983) proves that, in a game of bilateral trade between a single buyer and a single seller, no mechanism can be simultaneously individually-rational, budget-balanced, incentive-compatible and…

Computer Science and Game Theory · Computer Science 2017-11-23 Erel Segal-Halevi , Avinatan Hassidim

We study the problem of designing a two-sided market (double auction) to maximize the gains from trade (social welfare) under the constraints of (dominant-strategy) incentive compatibility and budget-balance. Our goal is to do so for an…

Computer Science and Game Theory · Computer Science 2024-06-21 Moshe Babaioff , Amitai Frey , Noam Nisan

This paper proves that the welfare of the first price auction in Bayes-Nash equilibrium is at least a $.743$-fraction of the welfare of the optimal mechanism assuming agents' values are independently distributed. The previous best bound was…

Computer Science and Game Theory · Computer Science 2018-03-20 Darrell Hoy , Sam Taggart , Zihe Wang

In fair division problems, the notion of price of fairness measures the loss in welfare due to a fairness constraint. Prior work on the price of fairness has focused primarily on envy-freeness up to one good (EF1) as the fairness…

Computer Science and Game Theory · Computer Science 2023-07-14 Umang Bhaskar , Neeldhara Misra , Aditi Sethia , Rohit Vaish

We study truthful mechanisms for approximating the Maximin-Share (MMS) allocation of agents with additive valuations for indivisible goods. Algorithmically, constant factor approximations exist for the problem for any number of agents. When…

Computer Science and Game Theory · Computer Science 2024-06-12 Ilan Reuven Cohen , Alon Eden , Talya Eden , Arsen Vasilyan

The fair division of resources is an important age-old problem that has led to a rich body of literature. At the center of this literature lies the question of whether there exist fair mechanisms despite strategic behavior of the agents. A…

Computer Science and Game Theory · Computer Science 2017-05-16 Simina Brânzei , Vasilis Gkatzelis , Ruta Mehta

We consider item allocation to individual agents who have additive valuations, in settings in which there are protected groups, and the allocation needs to give each protected group its "fair" share of the total welfare. Informally, within…

Computer Science and Game Theory · Computer Science 2022-04-15 Uriel Feige , Yehonatan Tahan

A seller is selling a pair of divisible complementary goods to an agent. The agent consumes the goods only in a specific ratio and freely disposes of excess in either goods. The value of the bundle and the ratio are private information of…

Theoretical Economics · Economics 2022-07-15 Komal Malik , Kolagani Paramahamsa

We study the design of a decentralized two-sided matching market in which agents' search is guided by the platform. There are finitely many agent types, each with (potentially random) preferences drawn from known type-specific…

Computer Science and Game Theory · Computer Science 2021-08-19 Nicole Immorlica , Brendan Lucier , Vahideh Manshadi , Alexander Wei