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Traditionally, the Bayesian optimal auction design problem has been considered either when the bidder values are i.i.d., or when each bidder is individually identifiable via her value distribution. The latter is a reasonable approach when…

Computer Science and Game Theory · Computer Science 2023-07-11 Nikhil R. Devanur , Zhiyi Huang , Christos-Alexandros Psomas

In this paper we show how the relaxation techniques can be used to establish the existence of an optimal contract in presence of information asymmetry. The method we illustrate was initially motivated by the problem of designing optimal…

Mathematical Finance · Quantitative Finance 2023-07-17 Guillermo Alonso Alvarez , Sergey Nadtochiy

The increasing penetration of renewable energy poses significant challenges to power grid reliability. There have been increasing interests in utilizing financial tools, such as insurance, to help end-users hedge the potential risk of lost…

Systems and Control · Electrical Eng. & Systems 2022-09-22 Dongwei Zhao , Hao Wang , Jianwei Huang , Xiaojun Lin

We study the revenue-maximizing mechanism when a buyer's value evolves endogenously because of learning-by-consuming. A seller sells one unit of a divisible good, while the buyer relies on his private, rough valuation to choose his…

Theoretical Economics · Economics 2022-09-07 Huiyi Guo , Wei He , Bin Liu

Selective labels are a common feature of consequential decision-making applications, referring to the lack of observed outcomes under one of the possible decisions. This paper reports work in progress on learning decision policies in the…

Machine Learning · Computer Science 2020-11-04 Dennis Wei

In the Secretary Problem, one has to hire the best among n candidates. The candidates are interviewed, one at a time, at a random order, and one has to decide on the spot, whether to hire a candidate or continue interviewing. It is well…

Data Structures and Algorithms · Computer Science 2015-07-23 Moran Feldman , Rani Izsak

A designer relies on an experimenter to provide information to a decision maker, but the experimenter has incentives to persuade rather than merely transmit information. Anticipating this motive, the designer can restrict the set of…

Theoretical Economics · Economics 2026-05-05 Francesco Bilotta , Christoph Carnehl , Justus Preusser

We discuss an incentivizing market and model-based approach to design the energy management and control systems which realize high-quality ancillary services in dynamic power grids. Under the electricity liberalization, such incentivizing…

Systems and Control · Computer Science 2019-01-01 Yasuaki Wasa , Kenji Hirata , Kenko Uchida

We study a single-buyer pricing problem with unreliable side information, motivated by the increasing use of AI-assisted decision-making and LLM-based predictions. The seller observes a private sample that may be either accurate (coinciding…

Computer Science and Game Theory · Computer Science 2026-04-06 Zhihao Gavin Tang , Yixin Tao , Shixin Wang

We study how increasing competition, by making prizes more unequal, affects effort in contests. In a finite type-space environment, we characterize the equilibrium, analyze the effect of competition under linear costs, and identify…

Theoretical Economics · Economics 2025-02-13 Andrzej Baranski , Sumit Goel

A principal hires an agent to acquire soft information about an unknown state. Even though neither how the agent learns nor what the agent discovers are contractible, we show the principal is unconstrained as to what information the agent…

Theoretical Economics · Economics 2023-07-31 Mark Whitmeyer , Kun Zhang

We investigate approximately optimal mechanisms in settings where bidders' utility functions are non-linear; specifically, convex, with respect to payments (such settings arise, for instance, in procurement auctions for energy). We provide…

Computer Science and Game Theory · Computer Science 2017-02-23 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

We consider a model of Bayesian observational learning in which a sequence of agents receives a private signal about an underlying binary state of the world. Each agent makes a decision based on its own signal and its observations of…

Machine Learning · Computer Science 2025-04-29 Shuo Wu , Pawan Poojary , Randall Berry

Experiments used in current continual learning research do not faithfully assess fundamental challenges of learning continually. Instead of assessing performance on challenging and representative experiment designs, recent research has…

Machine Learning · Statistics 2019-06-27 Sebastian Farquhar , Yarin Gal

Small operators who take part in secondary wireless spectrum markets typically have strict budget limits. In this paper, we study the bidding problem of a budget constrained operator in repeated secondary spectrum auctions. In existing…

Networking and Internet Architecture · Computer Science 2016-08-29 Mehrdad Khaledi , Alhussein Abouzeid

We study whether a planner can robustly implement a state-contingent social choice function when (i) agents must incur a cost to learn the state and (ii) the planner faces uncertainty regarding agents' preferences over outcomes, information…

Theoretical Economics · Economics 2021-12-14 Harry Pei , Bruno Strulovici

The problem of scheduling with testing in the framework of explorable uncertainty models environments where some preliminary action can influence the duration of a task. In the model, each job has an unknown processing time that can be…

Data Structures and Algorithms · Computer Science 2021-08-20 Susanne Albers , Alexander Eckl

An uninformed sender publicly commits to an informative experiment about an uncertain state, privately observes its outcome, and sends a cheap-talk message to a receiver. We provide an algorithm valid for arbitrary state-dependent…

Theoretical Economics · Economics 2024-05-10 Qianjun Lyu , Wing Suen

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

Bielecki and Rutkowski (2014) introduced and studied a generic nonlinear market model, which includes several risky assets, multiple funding accounts and margin accounts. In this paper, we examine the pricing and hedging of contract both…

Mathematical Finance · Quantitative Finance 2014-12-09 Tianyang Nie , Marek Rutkowski