Related papers: First Price Auction is $1-1/e^2$ Efficient
A standard result from auction theory is that bidding truthfully in a second price auction is a weakly dominant strategy. The result, however, does not apply in the presence of Cost Per Action (CPA) constraints. Such constraints exist, for…
We study the efficiency of simple combinatorial auctions for the allocation of a set of items to a set of agents, with private subadditive valuation functions and budget constraints. The class we consider includes all auctions that allocate…
In this paper, we derive bounds for profit maximizing prior-free procurement auctions where a buyer wishes to procure multiple units of a homogeneous item from n sellers who are strategic about their per unit valuation. The buyer earns the…
Motivated by online advertising auctions, we study auction design in repeated auctions played by simple Artificial Intelligence algorithms (Q-learning). We find that first-price auctions with no additional feedback lead to tacit-collusive…
We consider the standard moral hazard problem with limited liability. The first-order approach (FOA) is the main tool for its solution, but existing sufficient conditions for its validity are restrictive. Our main result shows that the FOA…
We study sequential procurement auctions where the sellers are provided with a ``best and final offer'' (BAFO) strategy. This strategy allows each seller $i$ to effectively ``freeze'' their price while remaining active in the auction, and…
We study the problem of repeatedly auctioning off an item to one of $k$ bidders where: a) bidders have a per-round individual rationality constraint, b) bidders may leave the mechanism at any point, and c) the bidders' valuations are…
In this paper, we investigate the computation of second-price pacing equilibria (SPPEs), a foundational model in online advertising auctions. We present a polynomial-time algorithm for computing exact SPPEs in instances with a constant…
Motivated by autobidding systems in online advertising, we study revenue maximization in markets with divisible goods and budget-constrained buyers with linear valuations. Our aim is to compute a single price for each good and an allocation…
In the allocation of resources to a set of agents, how do fairness guarantees impact the social welfare? A quantitative measure of this impact is the price of fairness, which measures the worst-case loss of social welfare due to fairness…
We study the problem of regret minimization for a single bidder in a sequence of first-price auctions where the bidder discovers the item's value only if the auction is won. Our main contribution is a complete characterization, up to…
We study equilibria in two-buyer sequential second-price (or first-price) auctions for identical goods. Buyers have weakly decreasing incremental values, and we make a behavioural no-overbidding assumption: the buyers do not bid above their…
We study the social efficiency of several well-known mechanisms for the allocation of a set of available (advertising) positions to a set of competing budget-constrained users (advertisers). Specifically, we focus on the Generalized Second…
We study multi-unit auctions in which bidders have limited knowledge of opponent strategies and values. We characterize optimal prior-free bids; these bids minimize the maximal loss in expected utility resulting from uncertainty surrounding…
The design of the best economic mechanism for Sponsored Search Auctions (SSAs) is a central task in computational mechanism design/game theory. Two open questions concern the adoption of user models more accurate than that one currently…
We experimentally evaluate the comparative performance of the winner-bid, average-bid, and loser-bid auctions for the dissolution of a partnership. The analysis of these auctions based on the empirical equilibrium refinement of Velez and…
A central decision maker (CDM), who seeks an efficient allocation of scarce resources among a finite number of players, often has to incorporate fairness criteria to avoid unfair outcomes. Indeed, the Price of Fairness (POF), a term coined…
We study the optimal behavior of a bidder in a real-time auction subject to the requirement that a specified collections of heterogeneous items be acquired within given time constraints. The problem facing this bidder is cast as a…
Posted price mechanisms are prevalent in allocating goods within online marketplaces due to their simplicity and practical efficiency. We explore a fundamental scenario where buyers' valuations are independent and identically distributed,…
Let $\alpha$ be a real number such that $1< \alpha <2$ and let $x_0=x_0(\alpha)$ be a {\rm(}unique{\rm)} positive solution of the equation $$ x^{\alpha-1} -\frac{\pi}{e^2\sqrt{3}}x +1=0. $$ Then we prove that for each positive integer…