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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 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 consider settings where an allocation has to be chosen repeatedly, returns are unknown but can be learned, and decisions are subject to constraints. Our model covers two-sided and one-sided matching, even with complex constraints. We…

Econometrics · Economics 2020-11-05 Maximilian Kasy , Alexander Teytelboym

This paper considers the hidden-action model of the principal-agent problem, in which a principal incentivizes an agent to work on a project using a contract. We investigate whether contracts with bounded payments are learnable and…

Computer Science and Game Theory · Computer Science 2024-02-23 Yurong Chen , Zhaohua Chen , Xiaotie Deng , Zhiyi Huang

We study a simple problem of allocating common-value goods. The designer seeks to allocate the goods to as many unit-demand agents as possible without monetary transfers, while agents, who possess partial private information about the…

Theoretical Economics · Economics 2026-04-22 Hiroto Sato , Ryo Shirakawa

A principal has $m$ identical objects to allocate among a group of $n$ agents. Objects are desirable and the principal's value of assigning an object to an agent is the agent's private information. The principal can verify up to $k$ agents,…

Theoretical Economics · Economics 2024-09-04 Albin Erlanson , Andreas Kleiner

We study the set of possible joint posterior belief distributions of a group of agents who share a common prior regarding a binary state, and who observe some information structure. For two agents we introduce a quantitative version of…

Theoretical Economics · Economics 2020-12-24 Itai Arieli , Yakov Babichenko , Fedor Sandomirskiy , Omer Tamuz

The central result of this paper is the analysis of an optimization problem which allows one to assess the limiting performance of a team of two agents who coordinate their actions. One agent is fully informed about the past and future…

Optimization and Control · Mathematics 2014-09-08 Benjamin Larrousse , Achal Agrawal , Samson Lasaulce

In most of microeconomic theory, consumers are assumed to exhibit decreasing marginal utilities. This paper considers combinatorial auctions among such submodular buyers. The valuations of such buyers are placed within a hierarchy of…

Computer Science and Game Theory · Computer Science 2007-05-23 Benny Lehmann , Daniel Lehmann , Noam Nisan

We model a procurement scenario in which two \textit{imperfect} bidders act simultaneously on behalf of a single buyer, a configuration common in display advertising and referred to as \textit{side-by-side bidding} but largely unexplored in…

Computer Science and Game Theory · Computer Science 2025-12-05 Benjamin Heymann

A set of objects is to be divided fairly among agents with different tastes, modeled by additive utility-functions. If we consider the objects as indivisible, many instances of the decision problem: ``Is there a fair division of the objects…

Computer Science and Game Theory · Computer Science 2025-07-03 Samuel Bismuth , Ivan Bliznets , Erel Segal-Halevi

We study the problem of designing optimal auctions under restrictions on the set of permissible allocations. In addition to allowing us to restrict to deterministic mechanisms, we can also indirectly model non-additive valuations. We prove…

Computer Science and Game Theory · Computer Science 2016-06-07 Ian Kash , Rafael Frongillo

Bilateral bargaining under incomplete information provides a controlled testbed for evaluating large language model (LLM) agent capabilities. Bilateral trade demands individual rationality, strategic surplus maximization, and cooperation to…

Computer Science and Game Theory · Computer Science 2026-04-21 Dirk Bergemann , Soheil Ghili , Xinyang Hu , Chuanhao Li , Zhuoran Yang

I provide a novel approach to characterizing the set of interim realizable allocations, in the spirit of Matthews (1984) and Border (1991). The approach allows me to identify precisely why exact characterizations are difficult to obtain in…

Theoretical Economics · Economics 2022-10-11 Quitzé Valenzuela-Stookey

I introduce a favor exchange model where favors are substitutable and study bilateral enforcement of cooperation. Without substitutability, the value of a relationship does not depend on the rest of the network, and in equilibrium there is…

Theoretical Economics · Economics 2023-09-20 Oguzhan Celebi

Recommendation systems when employed in markets play a dual role: they assist users in selecting their most desired items from a large pool and they help in allocating a limited number of items to the users who desire them the most. Despite…

Machine Learning · Computer Science 2022-08-01 Yigit Efe Erginbas , Soham Phade , Kannan Ramchandran

The binary relation framework has been shown to be applicable to many real-life preference handling scenarios. Here we study preference contraction: the problem of discarding selected preferences. We argue that the property of minimality…

Artificial Intelligence · Computer Science 2009-03-12 Denis Mindolin , Jan Chomicki

An agent choosing between various actions tends to take the one with the lowest cost. But this choice is arguably too rigid (not adaptive) to be useful in complex situations, e.g., where exploration-exploitation trade-off is relevant in…

Data Analysis, Statistics and Probability · Physics 2018-12-04 Armen E. Allahverdyan , Aram Galstyan , Ali E. Abbas , Zbigniew R. Struzik

We study sequential multi-issue trading between two greedily rational agents who exchange resources from a finite set of categories. Each agent's utility depends on its allocation, but the offering agent does not know the responding agent's…

Multiagent Systems · Computer Science 2026-05-15 Surya Murthy , Mustafa O. Karabag , Ufuk Topcu

We study independent private values auction environments in which the auctioneer's revenue depends nonlinearly on bidders' interim winning probabilities. Our framework accommodates heterogeneity among bidders and places no ad hoc…

Theoretical Economics · Economics 2026-02-23 Pasha Andreyanov , Ilia Krasikov , Alex Suzdaltsev