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Related papers: Approximating Gains-from-Trade in Matching Markets

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We study the problem of social welfare maximization in bilateral trade, where two agents, a buyer and a seller, trade an indivisible item. We consider arguably the simplest form of mechanisms -- the fixed-price mechanisms, where the…

Computer Science and Game Theory · Computer Science 2023-06-21 Yang Cai , Jinzhao Wu

We consider a monopolist seller with $n$ heterogeneous items, facing a single buyer. The buyer has a value for each item drawn independently according to (non-identical) distributions, and her value for a set of items is additive. The…

Computer Science and Game Theory · Computer Science 2020-08-03 Moshe Babaioff , Nicole Immorlica , Brendan Lucier , S. Matthew Weinberg

We study the classic bilateral trade setting. Myerson and Satterthwaite show that there is no Bayesian incentive compatible and budget-balanced mechanism that obtains the gains from trade of the first-best mechanism. Consider the…

Computer Science and Game Theory · Computer Science 2021-11-16 Moshe Babaioff , Shahar Dobzinski , Ron Kupfer

We continue the study of the performance for fixed-price mechanisms in the bilateral trade problem, and improve approximation ratios of welfare-optimal mechanisms in several settings. Specifically, in the case where only the buyer…

Computer Science and Game Theory · Computer Science 2023-03-29 Zhengyang Liu , Zeyu Ren , Zihe Wang

We introduce a formal framework for analyzing trades in financial markets. These days, all big exchanges use computer algorithms to match buy and sell requests and these algorithms must abide by certain regulatory guidelines. For example,…

Logic in Computer Science · Computer Science 2020-07-22 Suneel Sarswat , Abhishek Kr Singh

In the weighted bipartite matching problem, the goal is to find a maximum-weight matching in a bipartite graph with nonnegative edge weights. We consider its online version where the first vertex set is known beforehand, but vertices of the…

Computer Science and Game Theory · Computer Science 2021-03-05 Rebecca Reiffenhäuser

Two-sided matching markets describe a large class of problems wherein participants from one side of the market must be matched to those from the other side according to their preferences. In many real-world applications (e.g. content…

Computer Science and Game Theory · Computer Science 2024-10-16 Hadi Hosseini , Sanjukta Roy , Duohan Zhang

In a seminal paper, McAfee (1992) presented a truthful mechanism for double auctions, attaining asymptotically-optimal gain-from-trade without any prior information on the valuations of the traders. McAfee's mechanism handles…

Computer Science and Game Theory · Computer Science 2017-12-20 Erel Segal-Halevi , Avinatan Hassidim , Yonatan Aumann

The seminal impossibility result of Myerson and Satterthwaite (1983) states that for bilateral trade, there is no mechanism that is individually rational (IR), incentive compatible (IC), weakly budget balanced, and efficient. This has led…

Computer Science and Game Theory · Computer Science 2018-02-23 Moshe Babaioff , Yang Cai , Yannai A. Gonczarowski , Mingfei Zhao

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

Matching algorithms have demonstrated great success in several practical applications, but they often require centralized coordination and plentiful information. In many modern online marketplaces, agents must independently seek out and…

Computer Science and Game Theory · Computer Science 2025-01-14 Vade Shah , Bryce L. Ferguson , Jason R. Marden

We initiate the study of single-sample bilateral trade with a broker, drawing an analogy to the setting of single-sample bilateral trade without a broker considered in Babaioff et al. (2020) and Cai and Wu (2023). Our model captures the…

Computer Science and Game Theory · Computer Science 2026-03-04 MohammadTaghi Hajiaghayi , Gary Peng , Suho Shin

We propose a truthful-in-expectation, $(1-1/e)$-approximation mechanism for a strategic variant of the generalized assignment problem (GAP). In GAP, a set of items has to be optimally assigned to a set of bins without exceeding the capacity…

Computer Science and Game Theory · Computer Science 2016-08-17 Salman Fadaei , Martin Bichler

An important research thread in algorithmic game theory studies the design of efficient truthful mechanisms that approximate the optimal social welfare. A fundamental question is whether an \alpha-approximation algorithm translates into an…

Computer Science and Game Theory · Computer Science 2015-05-13 Chandra Chekuri , Iftah Gamzu

We study the bilateral trade problem: one seller, one buyer and a single, indivisible item for sale. It is well known that there is no fully-efficient and incentive compatible mechanism for this problem that maintains a balanced budget. We…

Computer Science and Game Theory · Computer Science 2018-11-20 Liad Blumrosen , Shahar Dobzinski

Two-sided matching platforms provide users with menus of match recommendations. To maximize the number of realized matches between the two sides (referred here as customers and suppliers), the platform must balance the inherent tension…

Computer Science and Game Theory · Computer Science 2020-07-29 Itai Ashlagi , Anilesh K. Krishnaswamy , Rahul Makhijani , Daniela Saban , Kirankumar Shiragur

We focus on the one-to-one two-sided matching model with two disjoint sets of agents of equal size, where each agent in a set has preferences on the agents in the other set modeled by a linear order. A matching mechanism associates a set of…

Theoretical Economics · Economics 2024-11-27 Daniela Bubboloni , Michele Gori , Claudia Meo

This paper deals with two-sided matching market with two disjoint sets, i.e. the set of buyers and the set of sellers. Each seller can trade with at most with one buyer and vice versa. Money is transferred from sellers to buyers for an…

Computer Science and Game Theory · Computer Science 2023-06-22 Yasir Ali , Asma Javaid

We consider a learning problem for the stable marriage model under unknown preferences for the left side of the market. We focus on the centralized case, where at each time step, an online platform matches the agents, and obtains a noisy…

Machine Learning · Computer Science 2025-01-07 Andreas Athanasopoulos , Anne-Marie George , Christos Dimitrakakis

Matching plays a vital role in the rational allocation of resources in many areas, ranging from market operation to people's daily lives. In economics, the term matching theory is coined for pairing two agents in a specific market to reach…

Social and Information Networks · Computer Science 2021-03-17 Jing Ren , Feng Xia , Xiangtai Chen , Jiaying Liu , Mingliang Hou , Ahsan Shehzad , Nargiz Sultanova , Xiangjie Kong