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Related papers: Robust Auction Design in the Auto-bidding World

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We consider the problem of learning optimal reserve price in repeated auctions against non-myopic bidders, who may bid strategically in order to gain in future rounds even if the single-round auctions are truthful. Previous algorithms,…

Computer Science and Game Theory · Computer Science 2018-05-01 Zhiyi Huang , Jinyan Liu , Xiangning Wang

In this study, we apply reinforcement learning techniques and propose what we call reinforcement mechanism design to tackle the dynamic pricing problem in sponsored search auctions. In contrast to previous game-theoretical approaches that…

Computer Science and Game Theory · Computer Science 2017-11-29 Weiran Shen , Binghui Peng , Hanpeng Liu , Michael Zhang , Ruohan Qian , Yan Hong , Zhi Guo , Zongyao Ding , Pengjun Lu , Pingzhong Tang

Many online companies sell advertisement space in second-price auctions with reserve. In this paper, we develop a probabilistic method to learn a profitable strategy to set the reserve price. We use historical auction data with features to…

Machine Learning · Statistics 2015-06-25 Maja R. Rudolph , Joseph G. Ellis , David M. Blei

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

A prevalent assumption in auction theory is that the auctioneer has full control over the market and that the allocation she dictates is final. In practice, however, agents might be able to resell acquired items in an aftermarket. A…

Theoretical Economics · Economics 2022-11-17 Moshe Babaioff , Nicole Immorlica , Yingkai Li , Brendan Lucier

We consider the problem of the optimization of bidding strategies in prior-dependent revenue-maximizing auctions, when the seller fixes the reserve prices based on the bid distributions. Our study is done in the setting where one bidder is…

Computer Science and Game Theory · Computer Science 2019-05-15 Thomas Nedelec , Noureddine El Karoui , Vianney Perchet

Recurring auctions are ubiquitous for selling durable assets like artworks and homes, with follow-up auctions held for unsold items. We investigate such auctions theoretically and empirically. Theoretical analysis demonstrates that…

Theoretical Economics · Economics 2025-02-19 Shanglyu Deng , Qiyao Zhou

Unexpected advertising items in sponsored search may reduce users' reliance on organic search, resulting in hidden cost for the e-commerce platform. To address this problem and promote sustainable growth, we propose a dynamic reserve price…

Computer Science and Game Theory · Computer Science 2025-08-26 Mang Li

Sellers often prescreen potential bidders, restricting participation to a select group of capable participants. Recent advances in machine learning and generative AI make this strategy increasingly viable by enabling the cost-effective…

Computer Science and Game Theory · Computer Science 2025-08-25 Yanwei Sun , Fupeng Sun , Chiwei Yan , Jiahua Wu

This paper describes an engine to optimize web publisher revenues from second-price auctions. These auctions are widely used to sell online ad spaces in a mechanism called real-time bidding (RTB). Optimization within these auctions is…

Computer Science and Game Theory · Computer Science 2020-06-15 Pedro Chahuara , Nicolas Grislain , Grégoire Jauvion , Jean-Michel Renders

In many applications, ads are displayed together with the prices, so as to provide a direct comparison among similar products or services. The price-displaying feature not only influences the consumers' decisions, but also affects the…

Artificial Intelligence · Computer Science 2023-03-24 Bin Li , Yahui Lei

Auto-bidding has become one of the main options for bidding in online advertisements, in which advertisers only need to specify high-level objectives and leave the complex task of bidding to auto-bidders. In this paper, we propose a family…

Computer Science and Game Theory · Computer Science 2021-03-25 Yuan Deng , Jieming Mao , Vahab Mirrokni , Song Zuo

We propose a new all-pay auction format in which risk-loving bidders pay a constant fee each time they bid for an object whose monetary value is common knowledge among the bidders, and bidding fees are the only source of benefit for the…

Computer Science and Game Theory · Computer Science 2016-03-03 Ali Kakhbod

From social networks to supply chains, more and more aspects of how humans, firms and organizations interact is mediated by artificial learning agents. As the influence of machine learning systems grows, it is paramount that we study how to…

Multiagent Systems · Computer Science 2022-11-02 Andrea Tacchetti , DJ Strouse , Marta Garnelo , Thore Graepel , Yoram Bachrach

This paper studies equilibrium quality of semi-separable position auctions (known as the Ad Types setting) with greedy or optimal allocation combined with generalized second-price (GSP) or Vickrey-Clarke-Groves (VCG) pricing. We make three…

Computer Science and Game Theory · Computer Science 2021-03-11 Hadi Elzayn , Riccardo Colini-Baldeschi , Brian Lan , Okke Schrijvers

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

Automated bidding, an emerging intelligent decision making paradigm powered by machine learning, has become popular in online advertising. Advertisers in automated bidding evaluate the cumulative utilities and have private financial…

Computer Science and Game Theory · Computer Science 2023-08-22 Yidan Xing , Zhilin Zhang , Zhenzhe Zheng , Chuan Yu , Jian Xu , Fan Wu , Guihai Chen

We study a setting where agents use no-regret learning algorithms to participate in repeated auctions. \citet{kolumbus2022auctions} showed, rather surprisingly, that when bidders participate in second-price auctions using no-regret bidding…

Computer Science and Game Theory · Computer Science 2024-11-15 Gagan Aggarwal , Anupam Gupta , Andres Perlroth , Grigoris Velegkas

This paper develops the theory of mechanism redesign by which an auctioneer can reoptimize an auction based on bid data collected from previous iterations of the auction on bidders from the same market. We give a direct method for…

Computer Science and Game Theory · Computer Science 2022-02-15 Shuchi Chawla , Jason D. Hartline , Denis Nekipelov , Anant Shah

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