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This paper considers Bayesian revenue maximization in the $k$-unit setting, where a monopolist seller has $k$ copies of an indivisible item and faces $n$ unit-demand buyers (whose value distributions can be non-identical). Four basic…

Computer Science and Game Theory · Computer Science 2022-07-22 Yaonan Jin , Shunhua Jiang , Pinyan Lu , Hengjie Zhang

We consider the problem of the optimization of bidding strategies in prior-dependent revenue-maximizing auctions, when the seller fixes the reserve prices based on the bid distributions. Our study is done in the setting where one bidder is…

Computer Science and Game Theory · Computer Science 2019-05-15 Thomas Nedelec , Noureddine El Karoui , Vianney Perchet

We consider two canonical Bayesian mechanism design settings. In the single-item setting, we prove tight approximation ratio for anonymous pricing: compared with Myerson Auction, it extracts at least $\frac{1}{2.62}$-fraction of revenue;…

Computer Science and Game Theory · Computer Science 2018-11-05 Yaonan Jin , Pinyan Lu , Qi Qi , Zhihao Gavin Tang , Tao Xiao

Second-price auctions with reserve play a critical role for modern search engine and popular online sites since the revenue of these companies often directly de- pends on the outcome of such auctions. The choice of the reserve price is the…

Machine Learning · Computer Science 2014-12-03 Mehryar Mohri , Andres Muñoz Medina

In the context of advertising auctions, finding good reserve prices is a notoriously challenging learning problem. This is due to the heterogeneity of ad opportunity types and the non-convexity of the objective function. In this work, we…

Machine Learning · Computer Science 2017-11-07 Andrés Muñoz Medina , Sergei Vassilvitskii

Good economic mechanisms depend on the preferences of participants in the mechanism. For example, the revenue-optimal auction for selling an item is parameterized by a reserve price, and the appropriate reserve price depends on how much the…

Computer Science and Game Theory · Computer Science 2014-06-10 Shuchi Chawla , Jason Hartline , Denis Nekipelov

Robust mechanism design is a rising alternative to Bayesian mechanism design, which yields designs that do not rely on assumptions like full distributional knowledge. We apply this approach to mechanisms for selling a single item, assuming…

Computer Science and Game Theory · Computer Science 2022-05-24 Nir Bachrach , Inbal Talgam-Cohen

A seller chooses a reserve price in a second-price auction to maximize worst-case expected revenue when she knows only the mean of value distribution and an upper bound on either values themselves or variance. Values are private and iid.…

Theoretical Economics · Economics 2020-08-10 Alex Suzdaltsev

Over the past few years, more and more Internet advertisers have started using automated bidding for optimizing their advertising campaigns. Such advertisers have an optimization goal (e.g. to maximize conversions), and some constraints…

Computer Science and Game Theory · Computer Science 2023-02-01 Gagan Aggarwal , Andres Perlroth , Junyao Zhao

The display advertising industry has recently transitioned from second- to first-price auctions as its primary mechanism for ad allocation and pricing. In light of this, publishers need to re-evaluate and optimize their auction parameters,…

Computer Science and Game Theory · Computer Science 2020-06-30 Zhe Feng , Sébastien Lahaie , Jon Schneider , Jinchao Ye

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

In recent years, a new branch of auction models called diffusion auction has extended the traditional auction into social network scenarios. The diffusion auction models the auction as a networked market whose nodes are potential customers…

Computer Science and Game Theory · Computer Science 2021-08-03 Yuhang Guo , Dong Hao

Many online companies sell advertisement space in second-price auctions with reserve. In this paper, we develop a probabilistic method to learn a profitable strategy to set the reserve price. We use historical auction data with features to…

Machine Learning · Statistics 2015-06-25 Maja R. Rudolph , Joseph G. Ellis , David M. Blei

The paper designs revenue-maximizing auction mechanisms for agents who aim to maximize their total obtained values rather than the classical quasi-linear utilities. Several models have been proposed to capture the behaviors of such agents…

Computer Science and Game Theory · Computer Science 2023-07-11 Pinyan Lu , Chenyang Xu , Ruilong Zhang

Designing an incentive compatible auction that maximizes expected revenue is an intricate task. The single-item case was resolved in a seminal piece of work by Myerson in 1981, but more than 40 years later a full analytical understanding of…

Computer Science and Game Theory · Computer Science 2022-10-17 Paul Dütting , Zhe Feng , Harikrishna Narasimhan , David C. Parkes , Sai Srivatsa Ravindranath

The design of optimal auctions is a problem of interest in economics, game theory and computer science. Despite decades of effort, strategyproof, revenue-maximizing auction designs are still not known outside of restricted settings.…

Computer Science and Game Theory · Computer Science 2021-10-19 Neehar Peri , Michael J. Curry , Samuel Dooley , John P. Dickerson

We obtain revenue guarantees for the simple pricing mechanism of a single posted price, in terms of a natural parameter of the distribution of buyers' valuations. Our revenue guarantee applies to the single item n buyers setting, with…

Computer Science and Game Theory · Computer Science 2015-06-02 Balasubramanian Sivan , Vasilis Syrgkanis , Omer Tamuz

Selling a perfectly divisible item to potential buyers is a fundamental task with apparent applications to pricing communication bandwidth and cloud computing services. Surprisingly, despite the rich literature on single-item auctions,…

Computer Science and Game Theory · Computer Science 2025-02-11 Ioannis Caragiannis , Zhile Jiang , Apostolis Kerentzis

In this paper, we introduce a Bayesian revenue-maximizing mechanism design model where the items have fixed, exogenously-given prices. Buyers are unit-demand and have an ordinal ranking over purchasing either one of these items at its given…

Computer Science and Game Theory · Computer Science 2020-10-16 Will Ma

Motivated by practical constraints in online advertising, we investigate single-parameter auction design for bidders with constraints on their Return On Investment (ROI) -- a targeted minimum ratio between the obtained value and the…

Computer Science and Game Theory · Computer Science 2023-10-04 Hongtao Lv , Xiaohui Bei , Zhenzhe Zheng , Fan Wu