Unconditional Competitive Auctions with Copy and Budget Constraints
- 712 Downloads
This paper investigates a new auction model in which bidders have both copy and budget constraints. The new model has extensive and interesting applications in auctions of online ad-words, software licenses, etc. We consider the following problem: Suppose all the participators are rational, how to allocate the objects at what price so as to guarantee auctioneer’s high revenue, and how high it is.
We introduce a new kind of mechanisms called win-win mechanisms and present the notion of unconditional competitive auctions. A notably interesting property of win-win mechanisms is that each bidder’s self-interested strategy brings better utility not only to himself but also to the auctioneer. Then we present win-win mechanisms for multi-unit auctions with copy and budget constraints. We prove that these auctions are unconditional competitive under the situation of both limited and unlimited supply.
KeywordsNash Equilibrium Budget Constraint Competitive Ratio Random Partition Assignment Game
Unable to display preview. Download preview PDF.
- 2.Borgs, C., Chayes, J.T., Immorlica, N., Mahdian, M., Saberi, A.: Multi-unit auctions with budget-constrained bidders. In: ACM Conference on Electronic Commerce (EC 2005), pp. 44–51 (2005)Google Scholar
- 3.Bu, T.-M., Qi, Q., Sun, A.W.: Unconditional competitive auctions with copy and budget constraints. Full version, Available at: http://www.cs.cityu.edu.hk/~deng/
- 7.Edelman, B., Ostrovsky, M., Schwarz, M.: Internet advertising and the generalized second price auction: Selling billions of dollars worth of dollars worth of keywords, Available at: http://www.nber.org/papers/w11765.pdf
- 9.Goldberg, A.V., Hartline, J.D., Wright, A.: Competitive auctions and digital goods. In: Proceedings of the Twelfth Annual ACM-SIAM Symposium on Discrete Algorithms (SODA 2001), January 7–9, pp. 735–744. ACM Press, New York (2001)Google Scholar
- 11.Kao, M.-Y., Li, X.-Y., Wang, W.: Output truthful versus input truthful: A new concept for algorithmic mechanism design (2006)Google Scholar