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In this survey, we summarize recent developments in research fueled by the growing adoption of automated bidding strategies in online advertising. We explore the challenges and opportunities that have arisen as markets embrace this…

We propose a combinatorial ascending auction that is "approximately" optimal, requiring minimal rationality to achieve this level of optimality, and is robust to strategic and distributional uncertainties. Specifically, the auction is…

Theoretical Economics · Economics 2024-08-23 Wei He , Jiangtao Li , Weijie Zhong

Auctions play an important role in electronic commerce, and have been used to solve problems in distributed computing. Automated approaches to designing effective auction mechanisms are helpful in reducing the burden of traditional game…

Computer Science and Game Theory · Computer Science 2010-02-08 Jinzhong Niu , Kai Cai , Simon Parsons

Combinatorial Auctions are a central problem in Algorithmic Mechanism Design: pricing and allocating goods to buyers with complex preferences in order to maximize some desired objective (e.g., social welfare, revenue, or profit). The…

Computer Science and Game Theory · Computer Science 2015-03-19 Avrim Blum , Anupam Gupta , Yishay Mansour , Ankit Sharma

Complements between goods - where one good takes on added value in the presence of another - have been a thorn in the side of algorithmic mechanism designers. On the one hand, complements are common in the standard motivating applications…

Computer Science and Game Theory · Computer Science 2012-05-21 Ittai Abraham , Moshe Babaioff , Shaddin Dughmi , Tim Roughgarden

Mechanism design, a branch of economics, aims to design rules that can autonomously achieve desired outcomes in resource allocation and public decision making. The research on mechanism design using machine learning is called automated…

Computer Science and Game Theory · Computer Science 2024-12-17 Tsuyoshi Suehara , Koh Takeuchi , Hisashi Kashima , Satoshi Oyama , Yuko Sakurai , Makoto Yokoo

This paper studies one emerging procurement auction scenario where the market is constructed over the social networks. In a social network composed of many agents, smartphones or computers, one requester releases her requirement for goods…

Computer Science and Game Theory · Computer Science 2022-09-01 Yuhang Guo , Dong Hao , Bin Li

In this paper, we present a new model and two mechanisms for auctions in two-sided markets of buyers and sellers, where budget constraints are imposed on buyers. Our model incorporates polymatroidal environments, and is applicable to a wide…

Computer Science and Game Theory · Computer Science 2018-09-17 Hiroshi Hirai , Ryosuke Sato

Using mechanised reasoning we prove that combinatorial Vickrey auctions are soundly specified in that they associate a unique outcome (allocation and transfers) to any valid input (bids). Having done so, we auto-generate verified executable…

Computer Science and Game Theory · Computer Science 2013-09-03 Marco B. Caminati , Manfred Kerber , Christoph Lange , Colin Rowat

Auction is the common paradigm for resource allocation which is a fundamental problem in human society. Existing research indicates that the two primary objectives, the seller's revenue and the allocation efficiency, are generally…

Computer Science and Game Theory · Computer Science 2019-05-27 Bin Li , Dong Hao , Dengji Zhao , Makoto Yokoo

We consider budget constrained combinatorial auctions where bidder $i$ has a private value $v_i$, a budget $b_i$, and is interested in all the items in $S_i$. The value to agent $i$ of a set of items $R$ is $|R \cap S_i| \cdot v_i$. Such…

Computer Science and Game Theory · Computer Science 2010-04-21 Amos Fiat , Stefano Leonardi , Jared Saia , Piotr Sankowski

In mechanism design it is typical to impose incentive compatibility and then derive an optimal mechanism subject to this constraint. By replacing the incentive compatibility requirement with the goal of minimizing expected ex post regret,…

Computer Science and Game Theory · Computer Science 2012-08-07 Paul Duetting , Felix Fischer , Pitchayut Jirapinyo , John K. Lai , Benjamin Lubin , David C. Parkes

It is well known that rightly applied reverse auctions offer big commercial potential to procurement departments. However, the sheer number of auction types often overwhelms users in practice. And since the implications of a wrongly chosen…

General Economics · Economics 2021-05-14 Gregor Berz , Florian Rupp , Brian Sieben

We study the necessity of interaction between individuals for obtaining approximately efficient allocations. The role of interaction in markets has received significant attention in economic thinking, e.g. in Hayek's 1945 classic paper. We…

Computer Science and Game Theory · Computer Science 2014-04-18 Shahar Dobzinski , Noam Nisan , Sigal Oren

In this paper we propose a mechanism for the allocation of pipeline capacities, assuming that the participants bidding for capacities do have subjective evaluation of various network routes. The proposed mechanism is based on the concept of…

Theoretical Economics · Economics 2023-08-22 Dávid Csercsik

We consider a simple simultaneous first price auction for multiple items in a complete information setting. Our goal is to completely characterize the mixed equilibria in this setting, for a simple, yet highly interesting, {\tt AND}-{\tt…

Computer Science and Game Theory · Computer Science 2012-10-08 Avinatan Hassidim , Haim Kaplan , Yishay Mansour , Noam Nisan

We develop a unified ascending-auction framework for computing Walrasian equilibria in combinatorial markets with strong substitutes valuations and piecewise-linear payment functions. Our auction extends the celebrated ascending auctions of…

Computer Science and Game Theory · Computer Science 2026-04-14 Taihei Oki , Ryosuke Sato

Auction design for the modern advertising market has gained significant prominence in the field of game theory. With the recent rise of auto-bidding tools, an increasing number of advertisers in the market are utilizing these tools for…

Computer Science and Game Theory · Computer Science 2024-12-31 Changfeng Xu , Chao Peng , Chenyang Xu , Zhengfeng Yang

A prevalent assumption in auction theory is that the auctioneer has full control over the market and that the allocation she dictates is final. In practice, however, agents might be able to resell acquired items in an aftermarket. A…

Theoretical Economics · Economics 2022-11-17 Moshe Babaioff , Nicole Immorlica , Yingkai Li , Brendan Lucier

Combinatorial auctions (CA) are a well-studied area in algorithmic mechanism design. However, contrary to the standard model, empirical studies suggest that a bidder's valuation often does not depend solely on the goods assigned to him. For…

Computer Science and Game Theory · Computer Science 2015-10-01 Yun Kuen Cheung , Monika Henzinger , Martin Hoefer , Martin Starnberger