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In this paper, we study the problem of learning to bid in repeated first-price auctions with budget constraints. In each period, the decision maker needs to submit a bid to win the auction and maximize the total collected reward, subject to…

Optimization and Control · Mathematics 2026-03-10 Zeng Fu , Jiashuo Jiang , Yuan Zhou

In mechanism design, it is challenging to design the optimal auction with correlated values in general settings. Although value distribution can be further exploited to improve revenue, the complex correlation structure makes it hard to…

Computer Science and Game Theory · Computer Science 2023-02-21 Da Huo , Zhilin Zhang , Zhenzhe Zheng , Chuan Yu , Jian Xu , Fan Wu

We consider the problem of budget feasible mechanism design proposed by Singer (2010), but in a Bayesian setting. A principal has a public value for hiring a subset of the agents and a budget, while the agents have private costs for being…

Computer Science and Game Theory · Computer Science 2015-10-22 Eric Balkanski , Jason D. Hartline

We study a simple model of algorithmic collusion in which Q-learning algorithms are designed in a strategic fashion. We let players (\textit{designers}) choose their exploration policy simultaneously prior to letting their algorithms…

Theoretical Economics · Economics 2024-09-13 Ivan Conjeaud

We reexamine the characterization of incentive compatible single-parameter mechanisms introduced in Archer & Tardos(2001). We argue that the claimed uniqueness result, called `Myerson's Lemma' was not well established. We provide an…

Computer Science and Game Theory · Computer Science 2022-12-06 Krzysztof R. Apt , Jan Heering

We study mechanism design for combinatorial cost sharing. Imagine that multiple items or services are available to be shared among a set of interested agents. The outcome of a mechanism in this setting consists of an assignment, determining…

Computer Science and Game Theory · Computer Science 2019-10-16 Georgios Birmpas , Evangelos Markakis , Guido Schäfer

The system operator's scheduling problem in electricity markets, called unit commitment, is a non-convex mixed-integer program. The optimal value function is non-convex, preventing the application of traditional marginal pricing theory to…

General Economics · Economics 2024-10-03 Conleigh Byers , Brent Eldridge

We propose a game-theoretic framework to study the outcomes of packetized payments, a cross-ledger transaction protocol, with strategic and possibly malicious agents. We derive the transaction failure rate and demonstrate that without…

Computer Science and Game Theory · Computer Science 2021-12-14 Alevtina Dubovitskaya , Damien Ackerer , Jiahua Xu

I prove that competitive market outcomes require computational intractability. If P = NP, firms can efficiently solve the collusion detection problem, identifying deviations from cooperative agreements in complex, noisy markets and thereby…

Computer Science and Game Theory · Computer Science 2026-02-25 Philip Z. Maymin

A buyer wishes to purchase a durable good from a seller who in each period chooses a mechanism under limited commitment. The buyer's valuation is binary and fully persistent. We show that posted prices implement all equilibrium outcomes of…

Theoretical Economics · Economics 2021-06-01 Laura Doval , Vasiliki Skreta

The existence of incentive-compatible computationally-efficient protocols for combinatorial auctions with decent approximation ratios is the paradigmatic problem in computational mechanism design. It is believed that in many cases good…

Computer Science and Game Theory · Computer Science 2009-05-14 Elchanan Mossel , Christos Papadimitriou , Michael Schapira , Yaron Singer

This paper studies dynamic mechanism design in a quasilinear Markovian environment and analyzes a direct mechanism model of a principal-agent framework in which the agent is allowed to exit at any period. We consider that the agent's…

Dynamical Systems · Mathematics 2021-05-10 Tao Zhang , Quanyan Zhu

Myerson's seminal work provides a computationally efficient revenue-optimal auction for selling one item to multiple bidders. Generalizing this work to selling multiple items at once has been a central question in economics and algorithmic…

Computer Science and Game Theory · Computer Science 2013-04-02 Constantinos Daskalakis , Alan Deckelbaum , Christos Tzamos

We study the design of optimal incentives in sequential processes. To do so, we consider a basic and fundamental model in which an agent initiates a value-creating sequential process through costly investment with random success. If…

Theoretical Economics · Economics 2023-11-22 Jens Gudmundsson , Jens Leth Hougaard , Juan D. Moreno-Ternero , Lars Peter Østerdal

A pricing principle is introduced for non-attainable $q$-exponential bounded contingent claims in an incomplete Brownian motion market setting. The buyer evaluates the contingent claim under the ``distorted Radon-Nikodym derivative'' and…

Mathematical Finance · Quantitative Finance 2022-10-11 Dejian Tian

Many markets rely on traders truthfully communicating who has cheated in the past and ostracizing those traders from future trade. This paper investigates when truthful communication is incentive compatible. We find that if each side has a…

Theoretical Economics · Economics 2020-05-21 S. Nageeb Ali , David A. Miller

We consider large scale cost allocation problems and consensus seeking problems for multiple agents, in which agents are suggested to collaborate in a distributed algorithm to find a solution. If agents are strategic to minimize their own…

Optimization and Control · Mathematics 2013-04-11 Takashi Tanaka , Farhad Farokhi , Cédric Langbort

In collaborative data sharing and machine learning, multiple parties aggregate their data resources to train a machine learning model with better model performance. However, as the parties incur data collection costs, they are only willing…

Collaborative machine learning (CML) provides a promising paradigm for democratizing advanced technologies by enabling cost-sharing among participants. However, the potential for rent-seeking behaviors among parties can undermine such…

Machine Learning · Computer Science 2025-01-03 Bingchen Wang , Zhaoxuan Wu , Fusheng Liu , Bryan Kian Hsiang Low

Discounting future costs and rewards is a common practice in accounting, game theory, and machine learning. In spite of this, existing logics for reasoning about strategies with cost and resource constraints do not account for discounting.…

Artificial Intelligence · Computer Science 2021-05-12 Lia Bozzone , Pavel Naumov
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