Download or read book Mechanism Design for Optimal Auctions written by Wenying Hu and published by . This book was released on 2012 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Game Theory in Wireless and Communication Networks written by Zhu Han and published by Cambridge University Press. This book was released on 2012 with total page 555 pages. Available in PDF, EPUB and Kindle. Book excerpt: This unified 2001 treatment of game theory focuses on finding state-of-the-art solutions to issues surrounding the next generation of wireless and communications networks. The key results and tools of game theory are covered, as are various real-world technologies and a wide range of techniques for modeling, design and analysis.
Download or read book Putting Auction Theory to Work written by Paul Milgrom and published by Cambridge University Press. This book was released on 2004-01-12 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive introduction to modern auction theory and its important new applications. It is written by a leading economic theorist whose suggestions guided the creation of the new spectrum auction designs. Aimed at graduate students and professionals in economics, the book gives the most up-to-date treatments of both traditional theories of 'optimal auctions' and newer theories of multi-unit auctions and package auctions, and shows by example how these theories are used. The analysis explores the limitations of prominent older designs, such as the Vickrey auction design, and evaluates the practical responses to those limitations. It explores the tension between the traditional theory of auctions with a fixed set of bidders, in which the seller seeks to squeeze as much revenue as possible from the fixed set, and the theory of auctions with endogenous entry, in which bidder profits must be respected to encourage participation.
Download or read book The Complexity of Optimal Mechanism Design written by Christos Tzamos and published by . This book was released on 2013 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 game theory, but its complexity has remained poorly understood. We answer this question by showing that a revenue-optimal auction in multi-item settings cannot be found and implemented computationally efficiently, unless ZPP = P^#^p. This is true even for a single additive bidder whose values for the items are independently distributed on two rational numbers with rational probabilities. Our result is very general: we show that it is hard to compute any encoding of an optimal auction of any format (direct or indirect, truthful or non-truthful) that can be implemented in expected polynomial time. In particular, under well-believed complexity-theoretic assumptions, revenue-optimization in very simple multi-item settings can only be tractably approximated. We note that our hardness result applies to randomized mechanisms in a very simple setting, and is not an artifact of introducing combinatorial structure to the problem by allowing correlation among item values, introducing combinatorial valuations, or requiring the mechanism to be deterministic (whose structure is readily combinatorial). Our proof is enabled by a flow interpretation of the solutions of an exponential-size linear program for revenue maximization with an additional supermodularity constraint.
Download or read book An Introduction to Auction Theory written by Flavio M. Menezes and published by OUP Oxford. This book was released on 2004-11-04 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auction theory is now an important component of an economist's training. The techniques and insights gained from the study of auction theory provide a useful starting point for those who want to venture into the economics of information, mechanism design, and regulatory economics. This book provides a step-by-step, self-contained treatment of the theory of auctions. It allows students and readers with a calculus background to work through all the basic results, covering the basic independent-private-model; the effects of introducing correlation in valuations on equilibrium behaviour and the seller's expected revenue; mechanism design; and the theory of multi-object auctions.
Download or read book An Introduction to the Theory of Mechanism Design written by Tilman Borgers and published by Oxford University Press. This book was released on 2015-05-01 with total page 263 pages. Available in PDF, EPUB and Kindle. Book excerpt: What is the best way to auction an asset? How should a group of people organize themselves to ensure the best provision of public goods? How should exchanges be organized? In An Introduction to the Theory of Mechanism Design, Tilman Börgers addresses these questions and more through an exploration of the economic theory of mechanism design. Mechanism design is reverse game theory. Whereas game theory takes the rules of the game as a given and makes predictions about the behavior of strategic players, the theory of mechanism design goes a step further and selects the optimal rules of the game. A relatively new economic theory, mechanism design studies the instrument itself as well as the results of the instrument. An Introduction to the Theory of Mechanism Design provides rigorous but accessible explanations of classic results in the theory of mechanism design, such as Myerson's theorem on expected revenue maximizing auctions, Myerson and Satterthwaite's theorem on the impossibility of ex post efficient bilateral trade with asymmetric information, and Gibbard and Satterthwaite's theorem on the non-existence of dominant strategy voting mechanisms. Börgers also provides an examination of the frontiers of current research in the area with an original and unified perspective that will appeal to advanced students of economics.
Download or read book Robust Mechanism Design written by Dirk Bergemann and published by World Scientific. This book was released on 2012 with total page 471 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreword by Eric Maskin (Nobel Laureate in Economics, 2007)This volume brings together the collected contributions on the theme of robust mechanism design and robust implementation that Dirk Bergemann and Stephen Morris have been working on for the past decade. The collection is preceded by a comprehensive introductory essay, specifically written for this volume with the aim of providing the readers with an overview of the research agenda pursued in the collected papers.The introduction selectively presents the main results of the papers, and attempts to illustrate many of them in terms of a common and canonical example, namely a single unit auction with interdependent values. It is our hope that the use of this example facilitates the presentation of the results and that it brings the main insights within the context of an important economic mechanism, namely the generalized second price auction.
Download or read book A Primer on Auction Design Management and Strategy written by David J. Salant and published by MIT Press. This book was released on 2014-12-19 with total page 199 pages. Available in PDF, EPUB and Kindle. Book excerpt: A guide to modeling and analyzing auctions, with the applications of game theory and auction theory to real-world auction decision making. Auctions are highly structured market transactions primarily used in thin markets (markets with few participants and infrequent transactions). In auctions, unlike most other markets, offers and counteroffers are typically made within a structure defined by a set of rigid and comprehensive rules. Because auctions are essentially complex negotiations that occur within a fully defined and rigid set of rules, they can be analyzed by game theoretic models more accurately and completely than can most other types of market transactions. This book offers a guide for modeling, analyzing, and predicting the outcomes of auctions, focusing on the application of game theory and auction theory to real-world auction design and decision making. After a brief introduction to fundamental concepts from game theory, the book explains some of the more significant results from the auction theory literature, including the revenue (or payoff) equivalence theorem, the winner's curse, and optimal auction design. Chapters on auction practice follow, addressing collusion, competition, information disclosure, and other basic principles of auction management, with some discussion of auction experiments and simulations. Finally, the book covers auction experience, with most of the discussion centered on energy and telecommunications auctions, which have become the proving ground for many new auction designs. A clear and concise introduction to auctions, auction design, and auction strategy, this Primer will be an essential resource for students, researchers, and practitioners.
Download or read book Optimal Auction Design in a Common Value Model written by Dirk Bergemann and published by . This book was released on 2017 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study auction design when bidders have a pure common value equal to the maximum of their independent signals. In the revenue maximizing mechanism, each bidder makes a payment that is independent of his signal and the allocation discriminates in favor of bidders with lower signals. We provide a necessary and sufficient condition under which the optimal mechanism reduces to a posted price under which all bidders are equally likely to get the good. This model of pure common values can equivalently be interpreted as model of resale: the bidders have independent private values at the auction stage, and the winner of the auction can make a take-it-or-leave-it-offer in the secondary market under complete information.
Download or read book Countering the Winner s Curse written by Dirk Bergemann and published by . This book was released on 2018 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: We characterize revenue maximizing mechanisms in a common value environment where the value of the object is equal to the highest of bidders' independent signals. The optimal mechanism exhibits either neutral selection, wherein the object is randomly allocated at a price that all bidders are willing to pay, or advantageous selection, wherein the object is allocated with higher probability to bidders with lower signals. If neutral selection is optimal, then the object is sold with probability one by a deterministic posted price. If advantageous selection is optimal, the object is sold with probability less than one at a random price. By contrast, standard auctions that allocate to the bidder with the highest signal (e.g., the first-price, second-price or English auctions) deliver lower revenue because of the adverse selection generated by the allocation rule: if a bidder wins the good, then he revises his expectation of its value downward. We further show that the posted price mechanism is optimal among those mechanisms that always allocate the good. A sufficient condition for the posted price to be optimal among all mechanisms is that there is at least one potential bidder who is omitted from the auction. Our qualitative results extend to more general common value environments where adverse selection is high.
Download or read book Approximately optimal Mechanisms in Auction Design Search Theory and Matching Markets written by Hedyeh Beyhaghi and published by . This book was released on 2019 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: Algorithmic mechanism design is an interdisciplinary field, concerned with the design of algorithms that are used by strategic agents. This field has applications in many real-world settings, such as auction design, search problems, and matching markets. In this thesis we study the mechanisms in these areas through lenses of simplicity and practicality. We pursue two main directions: study the strength of simple mechanisms, and improve the efficiency of practical mechanisms. In auction design, we consider a setting where a seller wants to sell many items to many buyers, and establish a tight gap between the efficiency of a simple and commonly-used auction with the complicated revenue-optimal auction. In search theory context, we introduce Pandora's problem with alternative inspections and provide the first approximately-optimal mechanism for this problem. In Pandora's problem with alternative inspections, a searcher wants to select one out of n elements whose values are unknown ahead of time. The searcher evaluates the elements one by one and can choose among different costly ways to evaluate each element, the order to evaluate the elements, and how long to continue the search, in order to maximize her utility. In matching markets, we propose theoretical models that closely capture the participant behaviors in the real world, and provide methods to optimize the already implemented mechanisms.
Download or read book Asymmetric Optimal Auction Design with Loss Averse Bidders written by Akitoshi Muramoto and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study optimal auctions with expectation-based loss-averse bidders. We first consider when bidders are ex-ante identical. Although symmetric designs are optimal for bidders with expected-utility preferences, if the degree of loss aversion is sufficiently large relative to the variation in valuations, expected revenues are higher in the optimal design with one buyer than in any symmetric mechanism with multiple bidders. Further, we provide a sufficient condition under which optimal mechanisms are necessarily asymmetric. When bidders are ex-ante heterogeneous, the optimal degree of favoritism must be modified from the level in Myerson (1981) to reduce the uncertainty in auction outcomes. Not only the degree of the required modification but also the direction of the modification may not be monotone in the degree of loss aversion.
Download or read book Optimal Auctions with Information Acquisition written by Xianwen Shi and published by . This book was released on 2012 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies optimal auction design in a private value setting with endogenous information gathering. We develop a general framework for modeling information acquisition when a seller wants to sell an object to one of several potential buyers, who can each gather information about their valuations prior to participation in the auction. We first demonstrate that the optimal monopoly price is always lower than the standard monopoly price. We then show that standard auctions with a reserve price remain optimal among symmetric mechanisms, but the optimal reserve price lies between the ex ante mean valuation of bidders and the standard reserve price in Myerson (1981). Finally, we show that the optimal asymmetric mechanism softens the price discrimination against quot;strongquot; bidders.
Download or read book Optimal revenue Mechanism Design for Auctions written by Alexander Regueiro and published by . This book was released on 2013 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mechanism Design written by Rakesh V. Vohra and published by Cambridge University Press. This book was released on 2011-05-09 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mechanism design is an analytical framework for thinking clearly and carefully about what exactly a given institution can achieve when the information necessary to make decisions is dispersed and privately held. This analysis provides an account of the underlying mathematics of mechanism design based on linear programming. Three advantages characterize the approach. The first is simplicity: arguments based on linear programming are both elementary and transparent. The second is unity: the machinery of linear programming provides a way to unify results from disparate areas of mechanism design. The third is reach: the technique offers the ability to solve problems that appear to be beyond solutions offered by traditional methods. No claim is made that the approach advocated should supplant traditional mathematical machinery. Rather, the approach represents an addition to the tools of the economic theorist who proposes to understand economic phenomena through the lens of mechanism design.
Download or read book Information Structures in Optimal Auctions written by Dirk Bergemann and published by . This book was released on 2001 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mechanism Design written by Christos Tzamos and published by . This book was released on 2017 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: A central problem in Economics and Algorithmic Game Theory is the design of auctions that maximize the auctioneer’s expected revenue. While optimal selling of a single item has been well-understood since the pioneering work of Myerson in 1981, extending his work to multi-item settings has remained a challenge. In this work, we obtain such extensions providing a mathematical framework for finding optimal mechanisms. In the first part of the work, we study revenue maximization in single-bidder multi-item settings, connecting this problem to a well-studied problem in measure theory, namely the design of optimal transport maps. By establishing strong duality between these two problems, we obtain a characterization of the structure of optimal mechanisms. As an important application, we prove that a grand bundling mechanism is optimal if and only if two measure-theoretic inequalities are satisfied. Likewise, we obtain necessary and sufficient conditions for the optimality of any mechanism in terms of a collection of measure-theoretic inequalities. Using our machinery we derive closed-form solutions in several example scenarios, illustrating the richness of mechanisms in multi-item settings, and we prove that the mechanism design problem in general is computationally intractable even for a single bidder. In the second part of the work, we study multi-bidder settings where bidders have uncertainty about the items for sale. In such settings, the auctioneer may wish to reveal some information about the item for sale in addition to running an auction. While prior work has focused only on the information design part keeping the mechanism fixed, we study the combined problem of designing the information revelation policy together with the auction format. We find that prior approaches to this problem are suboptimal and identify the optimal mechanism by connecting this setting to the multi-item mechanism design problem studied in the first part of the work.
