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We study mechanism design when agents may have hidden secondary goals which will manifest as non-trivial preferences among outcomes for which their primary utility is the same. We show that in such cases, a mechanism is robust against…

Computer Science and Game Theory · Computer Science 2023-07-25 Renato Paes Leme , Jon Schneider , Hanrui Zhang

Most of the work in the auction design literature assumes that bidders behave rationally based on the information available for every individual auction, and the revelation principle enables designers to restrict their efforts to incentive…

Computer Science and Game Theory · Computer Science 2024-05-14 Juncheng Li , Pingzhong Tang

We study individual rational, Pareto optimal, and incentive compatible mechanisms for auctions with heterogeneous items and budget limits. For multi-dimensional valuations we show that there can be no deterministic mechanism with these…

Computer Science and Game Theory · Computer Science 2012-10-01 Paul Duetting , Monika Henzinger , Martin Starnberger

A seller wants to sell a good to a set of bidders using a credible mechanism. We show that when the seller has private information about her cost, it is impossible for a static mechanism to achieve the optimal revenue. In particular, even…

Theoretical Economics · Economics 2025-09-29 Martino Banchio , Andrzej Skrzypacz , Frank Yang

In the realm of cost-sharing mechanisms, the vulnerability to Sybil strategies -- also known as false-name strategies, where agents create fake identities to manipulate outcomes -- has not yet been studied. In this paper, we delve into the…

Computer Science and Game Theory · Computer Science 2024-05-09 Bruno Mazorra

We study a seller who sells a single good to multiple bidders with uncertainty over the joint distribution of bidders' valuations, as well as bidders' higher-order beliefs about their opponents. The seller only knows the (possibly…

Theoretical Economics · Economics 2022-02-16 Ethan Che

Mechanism design for one-sided markets has been investigated for several decades in economics and in computer science. More recently, there has been an increased attention on mechanisms for two-sided markets, in which buyers and sellers act…

Computer Science and Game Theory · Computer Science 2021-03-09 Riccardo Colini-Baldeschi , Paul Goldberg , Bart de Keijzer , Stefano Leonardi , Tim Roughgarden , Stefano Turchetta

In a single-parameter mechanism design problem, a provider is looking to sell a service to a group of potential buyers. Each buyer $i$ has a private value $v_i$ for receiving the service and a feasibility constraint restricts which sets of…

Computer Science and Game Theory · Computer Science 2022-02-21 Michal Feldman , Vasilis Gkatzelis , Nick Gravin , Daniel Schoepflin

We study the design of mechanisms -- e.g., auctions -- when the designer does not control information flows between mechanism participants. A mechanism equilibrium is leakage-proof if no player conditions their actions on leaked…

Theoretical Economics · Economics 2025-11-04 Samuel Häfner , Marek Pycia , Haoyuan Zeng

Since economic mechanisms are often applied to very different instances of the same problem, it is desirable to identify mechanisms that work well in a wide range of circumstances. We pursue this goal for a position auction setting and…

Computer Science and Game Theory · Computer Science 2013-07-22 Paul Duetting , Felix Fischer , David C. Parkes

We show that every universally truthful randomized mechanism for combinatorial auctions with submodular valuations that provides $m^{\frac 1 2 -\epsilon}$ approximation to the social welfare and uses value queries only must use…

Computer Science and Game Theory · Computer Science 2015-03-17 Shahar Dobzinski

We address auctions in two-sided markets with budget constraints on buyers, a fundamental setting also crucial for applications such as display advertising. Our goal is to design efficient mechanisms that satisfy dominant strategy incentive…

Computer Science and Game Theory · Computer Science 2024-11-05 Ryosuke Sato

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

In this paper, we present the first approximation algorithms for the problem of designing revenue optimal Bayesian incentive compatible auctions when there are multiple (heterogeneous) items and when bidders can have arbitrary demand and…

Computer Science and Game Theory · Computer Science 2010-03-30 Sayan Bhattacharya , Gagan Goel , Sreenivas Gollapudi , Kamesh Munagala

Generating good revenue is one of the most important problems in Bayesian auction design, and many (approximately) optimal dominant-strategy incentive compatible (DSIC) Bayesian mechanisms have been constructed for various auction settings.…

Computer Science and Game Theory · Computer Science 2020-08-07 Jing Chen , Bo Li , Yingkai Li , Pinyan Lu

We characterize single-item auction formats that are shill-proof in the sense that a profit-maximizing seller has no incentive to submit shill bids. We distinguish between strong shill-proofness, in which a seller with full knowledge of…

Theoretical Economics · Economics 2026-01-01 Andrew Komo , Scott Duke Kominers , Tim Roughgarden

An indivisible object may be sold to one of $n$ agents who know their valuations of the object. The seller would like to use a revenue-maximizing mechanism but her knowledge of the valuations' distribution is scarce: she knows only the…

Theoretical Economics · Economics 2020-08-27 Alex Suzdaltsev

We efficiently solve the optimal multi-dimensional mechanism design problem for independent bidders with arbitrary demand constraints when either the number of bidders is a constant or the number of items is a constant. In the first…

Computer Science and Game Theory · Computer Science 2011-12-20 Constantinos Daskalakis , S. Matthew Weinberg

We consider the classical mathematical economics problem of {\em Bayesian optimal mechanism design} where a principal aims to optimize expected revenue when allocating resources to self-interested agents with preferences drawn from a known…

Computer Science and Game Theory · Computer Science 2010-01-15 Shuchi Chawla , Jason Hartline , David Malec , Balasubramanian Sivan

In the private values single object auction model, we construct a satisfactory mechanism - a symmetric, dominant strategy incentive compatible, and budget-balanced mechanism. Our mechanism allocates the object to the highest valued agent…

Computer Science and Game Theory · Computer Science 2016-10-04 Debasis Mishra , Tridib Sharma
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