Bayesian Optimal Auctions via Multi- to Single-agent Reduction
CORNELL UNIV ITHACA NY DEPT OF COMPUTER SCIENCE
Pagination or Media Count:
We study an abstract optimal auction problem for a single good or service. This problem includes environments where agents have budgets, risk preferences, or multi-dimensional preferences over several possible configurations of the good furthermore, it allows an agents budget and risk preference to be known only privately to the agent. These are the main challenge areas for auction theory. A single-agent problem is to optimize a given objective subject to a constraint on the maximum probability with which each type is allocated, a.k.a., an allocation rule. Our approach is a reduction from multi-agent mechanism design problem to collection of single-agent problems. We focus on maximizing revenue, but our results can be applied to other objectives e.g., welfare.
- Computer Systems