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We study the power of price discrimination via an intermediary in bilateral trade, when there is a revenue-maximizing seller selling an item to a buyer with a private value drawn from a prior. Between the seller and the buyer, there is an…

Computer Science and Game Theory · Computer Science 2023-04-28 Shao-Heng Ko , Kamesh Munagala

Selling a single item to $n$ self-interested buyers is a fundamental problem in economics, where the two objectives typically considered are welfare maximization and revenue maximization. Since the optimal mechanisms are often impractical…

Computer Science and Game Theory · Computer Science 2024-11-06 Billy Jin , Thomas Kesselheim , Will Ma , Sahil Singla

We examine information structure design, also called "persuasion" or "signaling", in the presence of a constraint on the amount of communication. We focus on the fundamental setting of bilateral trade, which in its simplest form involves a…

Computer Science and Game Theory · Computer Science 2020-03-09 Shaddin Dughmi , David Kempe , Ruixin Qiang

We consider the provision of an abstract service to single-dimensional agents. Our model includes position auctions, single-minded combinatorial auctions, and constrained matching markets. When the agents' values are drawn from a…

Computer Science and Game Theory · Computer Science 2012-12-18 Nikhil R. Devanur , Jason D. Hartline , Qiqi Yan

When agents with independent priors bid for a single item, Myerson's optimal auction maximizes expected revenue, whereas Vickrey's second-price auction optimizes social welfare. We address the natural question of trade-offs between the two…

Computer Science and Game Theory · Computer Science 2012-05-15 Ilias Diakonikolas , Christos Papadimitriou , George Pierrakos , Yaron Singer

Walrasian prices, if they exist, have the property that one can assign every buyer some bundle in her demand set, such that the resulting assignment will maximize social welfare. Unfortunately, this assumes carefully breaking ties amongst…

Computer Science and Game Theory · Computer Science 2018-06-06 Vincent Cohen-Addad , Alon Eden , Michal Feldman , Amos Fiat

Bilateral trade, a fundamental topic in economics, models the problem of intermediating between two strategic agents, a seller and a buyer, willing to trade a good for which they hold private valuations. Despite the simplicity of this…

Machine Learning · Computer Science 2024-02-20 Nicolò Cesa-Bianchi , Tommaso Cesari , Roberto Colomboni , Federico Fusco , Stefano Leonardi

Bilateral trade models the task of intermediating between two strategic agents, a seller and a buyer, willing to trade a good for which they hold private valuations. We study this problem from the perspective of a broker, in a regret…

Computer Science and Game Theory · Computer Science 2025-09-29 Simone Di Gregorio , Paul Dütting , Federico Fusco , Chris Schwiegelshohn

Empirical evidence suggests that even the most competitive markets are not strictly efficient. Price histories can be used to predict near future returns with a probability better than random chance. Many markets can be considered as {\it…

Statistical Mechanics · Physics 2009-10-31 Yi-Cheng Zhang

We study a classic Bayesian mechanism design setting of monopoly problem for an additive buyer in the presence of budgets. In this setting a monopolist seller with $m$ heterogeneous items faces a single buyer and seeks to maximize her…

Computer Science and Game Theory · Computer Science 2018-10-09 Yu Cheng , Nick Gravin , Kamesh Munagala , Kangning Wang

We study the problem of selling information to a data-buyer who faces a decision problem under uncertainty. We consider the classic Bayesian decision-theoretic model pioneered by [Blackwell, 1951, 1953]. Initially, the data buyer has only…

Computer Science and Game Theory · Computer Science 2022-02-21 Dirk Bergemann , Yang Cai , Grigoris Velegkas , Mingfei Zhao

We show that computing the revenue-optimal deterministic auction in unit-demand single-buyer Bayesian settings, i.e. the optimal item-pricing, is computationally hard even in single-item settings where the buyer's value distribution is a…

Computer Science and Game Theory · Computer Science 2015-03-10 Constantinos Daskalakis , Alan Deckelbaum , Christos Tzamos

In revenue maximization of selling a digital product in a social network, the utility of an agent is often considered to have two parts: a private valuation, and linearly additive influences from other agents. We study the incomplete…

Computer Science and Game Theory · Computer Science 2011-09-27 Wei Chen , Pinyan Lu , Xiaorui Sun , Bo Tang , Yajun Wang , Zeyuan Allen Zhu

Multi-unit auctions are a paradigmatic model, where a seller brings multiple units of a good, while several buyers bring monetary endowments. It is well known that Walrasian equilibria do not always exist in this model, however compelling…

Computer Science and Game Theory · Computer Science 2017-10-10 Simina Brânzei , Aris Filos-Ratsikas , Peter Bro Miltersen , Yulong Zeng

In this work we are concerned with the design of efficient mechanisms while eliciting limited information from the agents. First, we study the performance of sampling approximations in facility location games. Our key result is to show that…

Computer Science and Game Theory · Computer Science 2022-08-26 Ioannis Anagnostides , Dimitris Fotakis , Panagiotis Patsilinakos

Using duality theory techniques we derive simple, closed-form formulas for bounding the optimal revenue of a monopolist selling many heterogeneous goods, in the case where the buyer's valuations for the items come i.i.d. from a uniform…

Computer Science and Game Theory · Computer Science 2015-10-14 Yiannis Giannakopoulos

There is only one technique for prior-free optimal mechanism design that generalizes beyond the structurally benevolent setting of digital goods. This technique uses random sampling to estimate the distribution of agent values and then…

Computer Science and Game Theory · Computer Science 2011-08-25 Bach Q. Ha , Jason D. Hartline

We explore the effects of social influence in a simple market model in which a large number of agents face a binary choice: 'to buy/not to buy' a single unit of a product at a price posted by a single seller (the monopoly case). We consider…

Disordered Systems and Neural Networks · Physics 2008-12-02 Jean-Pierre Nadal , Denis Phan , Mirta B. Gordon , Jean Vannimenus

We study efficiency loss in Bayesian revenue optimal auctions. We quantify this as the worst case ratio of loss in the realized social welfare to the social welfare that can be realized by an efficient auction. Our focus is on auctions with…

Computer Science and Game Theory · Computer Science 2010-09-14 Vineet Abhishek , Bruce Hajek

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