Auctions, Market Mechanisms and Their Applications
Volume 14 of the series Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering pp 89-91
Revenue Submodularity
- Shaddin DughmiAffiliated withDepartment of Computer Science, Stanford University
- , Tim RoughgardenAffiliated withDepartment of Computer Science, Stanford University
- , Mukund SundararajanAffiliated withDepartment of Computer Science, Stanford University
Abstract
We introduce revenue submodularity, the property that market expansion has diminishing returns on an auction’s expected revenue. We prove that revenue submodularity is generally possible only in matroid markets, that Bayesian-optimal auctions are always revenue-submodular in such markets, and that the VCG mechanism is revenue-submodular in matroid markets with IID bidders and “sufficient competition”. We also give two applications of revenue submodularity: good approximation algorithms for novel market expansion problems, and approximate revenue guarantees for the VCG mechanism with IID bidders.
- Title
- Revenue Submodularity
- Book Title
- Auctions, Market Mechanisms and Their Applications
- Book Subtitle
- First International ICST Conference, AMMA 2009, Boston, MA, USA, May 8-9, 2009, Revised Selected Papers
- Pages
- pp 89-91
- Copyright
- 2009
- DOI
- 10.1007/978-3-642-03821-1_13
- Print ISBN
- 978-3-642-03820-4
- Online ISBN
- 978-3-642-03821-1
- Series Title
- Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering
- Series Volume
- 14
- Series ISSN
- 1867-8211
- Publisher
- Springer Berlin Heidelberg
- Copyright Holder
- Institute for Computer Sciences, Social Informatics and Telecommunications Engineering
- Additional Links
- Topics
- Industry Sectors
- eBook Packages
- Editors
-
- Sanmay Das (15)
- Michael Ostrovsky (16)
- David Pennock (17)
- Boleslaw Szymanksi (18)
- Editor Affiliations
-
- 15. Rensselaer Polytechnic Institute
- 16. Graduate School of Business, Stanford University
- 17. Yahoo! Reseach
- 18. Rensselaer Polytechnic Institute
- Authors
-
- Shaddin Dughmi (19)
- Tim Roughgarden (19)
- Mukund Sundararajan (19)
- Author Affiliations
-
- 19. Department of Computer Science, Stanford University, Stanford, CA, 94305, USA
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