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Auctions are modeled as Bayesian games with continuous type and action spaces. Determining equilibria in auction games is computationally hard in general and no exact solution theory is known. We introduce an algorithmic framework in which…

Computer Science and Game Theory · Computer Science 2023-05-10 Martin Bichler , Maximilian Fichtl , Matthias Oberlechner

Applications of combinatorial auctions (CA) as market mechanisms are prevalent in practice, yet their Bayesian Nash equilibria (BNE) remain poorly understood. Analytical solutions are known only for a few cases where the problem can be…

Computer Science and Game Theory · Computer Science 2021-02-09 Stefan Heidekrüger , Paul Sutterer , Nils Kohring , Maximilian Fichtl , Martin Bichler

We compute equilibrium strategies in multi-stage games with continuous signal and action spaces as they are widely used in the management sciences and economics. Examples include sequential sales via auctions, multi-stage elimination…

Computer Science and Game Theory · Computer Science 2024-07-23 Fabian R. Pieroth , Nils Kohring , Martin Bichler

We present an algorithm for computing pure-strategy epsilon-perfect Bayesian equilibria in sequential auctions with continuous action and value spaces. Importantly, our algorithm includes a verification phase that computes an upper bound on…

Computer Science and Game Theory · Computer Science 2025-02-19 Vinzenz Thoma , Vitor Bosshard , Sven Seuken

Game theory has been developed by scientists as a theory of strategic interaction among players who are supposed to be perfectly rational. These strategic interactions might have been presented in an auction, a business negotiation, a chess…

Computer Science and Game Theory · Computer Science 2020-04-07 Medet Kanmaz , Elif Surer

Bidding in simultaneous auctions is challenging because an agent's value for a good in one auction may depend on the uncertain outcome of other auctions: the so-called exposure problem. Given the gap in understanding of general simultaneous…

Computer Science and Game Theory · Computer Science 2012-10-19 Michael P. Wellman , Eric Sodomka , Amy Greenwald

In practice, most auction mechanisms are not strategy-proof, so equilibrium analysis is required to predict bidding behavior. In many auctions, though, an exact equilibrium is not known and one would like to understand whether -- manually…

Computer Science and Game Theory · Computer Science 2024-08-22 Fabian R. Pieroth , Tuomas Sandholm

We consider some classical optimization problems in path planning and network transport, and we introduce new auction-based algorithms for their optimal and suboptimal solution. The algorithms are based on mathematical ideas that are…

Optimization and Control · Mathematics 2022-07-21 Dimitri Bertsekas

We consider the computational complexity of computing Bayes-Nash equilibria in first-price auctions, where the bidders' values for the item are drawn from a general (possibly correlated) joint distribution. We show that when the values and…

Computer Science and Game Theory · Computer Science 2025-06-06 Aris Filos-Ratsikas , Yiannis Giannakopoulos , Alexandros Hollender , Charalampos Kokkalis

Reinforcement learning from self-play has recently reported many successes. Self-play, where the agents compete with themselves, is often used to generate training data for iterative policy improvement. In previous work, heuristic rules are…

Machine Learning · Computer Science 2020-09-15 Yuanyi Zhong , Yuan Zhou , Jian Peng

Equilibrium problems in Bayesian auction games can be described as systems of differential equations. Depending on the model assumptions, these equations might be such that we do not have a rigorous mathematical solution theory. The lack of…

Computer Science and Game Theory · Computer Science 2024-12-18 Martin Bichler , Stephan B. Lunowa , Matthias Oberlechner , Fabian R. Pieroth , Barbara Wohlmuth

Revenue-optimal auction design is a challenging problem with significant theoretical and practical implications. Sequential auction mechanisms, known for their simplicity and strong strategyproofness guarantees, are often limited by…

Computer Science and Game Theory · Computer Science 2024-07-12 Sai Srivatsa Ravindranath , Zhe Feng , Di Wang , Manzil Zaheer , Aranyak Mehta , David C. Parkes

Online auctions are one of the most fundamental facets of the modern economy and power an industry generating hundreds of billions of dollars a year in revenue. Auction theory has historically focused on the question of designing the best…

Computer Science and Game Theory · Computer Science 2021-09-23 Thomas Nedelec , Clément Calauzènes , Noureddine El Karoui , Vianney Perchet

We present a new algorithm for computing pure-strategy $\varepsilon$-Bayes-Nash equilibria ($\varepsilon$-BNEs) in combinatorial auctions with continuous value and action spaces. An essential innovation of our algorithm is to separate the…

Computer Science and Game Theory · Computer Science 2021-07-05 Vitor Bosshard , Benedikt Bünz , Benjamin Lubin , Sven Seuken

The design of revenue-maximizing auctions with strong incentive guarantees is a core concern of economic theory. Computational auctions enable online advertising, sourcing, spectrum allocation, and myriad financial markets. Analytic…

Computer Science and Game Theory · Computer Science 2020-10-14 Kevin Kuo , Anthony Ostuni , Elizabeth Horishny , Michael J. Curry , Samuel Dooley , Ping-yeh Chiang , Tom Goldstein , John P. Dickerson

The recent online platforms propose multiple items for bidding. The state of the art, however, is limited to the analysis of one item auction without resubmission. In this paper we study multi-item lowest unique bid auctions (LUBA) with…

Computer Science and Game Theory · Computer Science 2017-03-01 Yida Xu , Hamidou Tembine

We introduce a new approach for computing optimal equilibria via learning in games. It applies to extensive-form settings with any number of players, including mechanism design, information design, and solution concepts such as correlated,…

Many real-world auctions are dynamic processes, in which bidders interact and report information over multiple rounds with the auctioneer. The sequential decision making aspect paired with imperfect information renders analyzing the…

Computer Science and Game Theory · Computer Science 2023-12-21 Vinzenz Thoma , Michael Curry , Niao He , Sven Seuken

Our paper concerns the computation of Nash equilibria of first-price auctions with correlated values. While there exist several equilibrium computation methods for auctions with independent values, the correlation of the bidders' values…

Computer Science and Game Theory · Computer Science 2021-08-11 Benjamin Heymann , Panayotis Mertikopoulos

This survey outlines a general and modular theory for proving approximation guarantees for equilibria of auctions in complex settings. This theory complements traditional economic techniques, which generally focus on exact and optimal…

Computer Science and Game Theory · Computer Science 2016-07-27 Tim Roughgarden , Vasilis Syrgkanis , Eva Tardos
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