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  1. Transactions on Economics and Computation (TEAC)
  2. ACM Transactions on Economics and Computation (TEAC) : Volume 4
  3. Issue 1, December 2015
  4. An Expressive Mechanism for Auctions on the Web
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ACM Transactions on Economics and Computation (TEAC) : Volume 5
ACM Transactions on Economics and Computation (TEAC) : Volume 4
Issue 4(Special Issue on EC'14), August 2016
Issue 3(Special Issue on EC'13), June 2016
Issue 2, February 2016
Issue 1, December 2015
An Expressive Mechanism for Auctions on the Web
On Multiple Keyword Sponsored Search Auctions with Budgets
Auctioning Time: Truthful Auctions of Heterogeneous Divisible Goods
Auctions for Heterogeneous Items and Budget Limits
How to Put Through Your Agenda in Collective Binary Decisions
Strategyproof Matching with Minimum Quotas
ACM Transactions on Economics and Computation (TEAC) : Volume 3
ACM Transactions on Economics and Computation (TEAC) : Volume 2
ACM Transactions on Economics and Computation (TEAC) : Volume 1

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An Expressive Mechanism for Auctions on the Web

Content Provider ACM Digital Library
Author Dütting, Paul Weber, Ingmar Henzinger, Monika
Copyright Year 2015
Abstract Auctions are widely used on the Web. Applications range from sponsored search to platforms such as eBay. In these and in many other applications the auctions in use are single-/multi-item auctions with unit demand. The main drawback of standard mechanisms for this type of auctions, such as VCG and GSP, is the limited expressiveness that they offer to the bidders. The General Auction Mechanism (GAM) of Aggarwal et al. [2009] takes a first step toward addressing the problem of limited expressiveness by computing a bidder optimal, envy-free outcome for linear utility functions with identical slopes and a single discontinuity per bidder-item pair. We show that in many practical situations this does not suffice to adequately model the preferences of the bidders, and we overcome this problem by presenting the first mechanism for piecewise linear utility functions with nonidentical slopes and multiple discontinuities. Our mechanism runs in polynomial time. Like GAM it is incentive compatible for inputs that fulfill a certain nondegeneracy assumption, but our requirement is more general than the requirement of GAM. For discontinuous utility functions that are nondegenerate as well as for continuous utility functions the outcome of our mechanism is a competitive equilibrium. We also show how our mechanism can be used to compute approximately bidder optimal, envy-free outcomes for a general class of continuous utility functions via piecewise linear approximation. Finally, we prove hardness results for even more expressive settings.
Starting Page 1
Ending Page 34
Page Count 34
File Format PDF
ISSN 21678375
e-ISSN 21678383
DOI 10.1145/2716312
Volume Number 4
Issue Number 1
Journal ACM Transactions on Economics and Computation (TEAC)
Language English
Publisher Association for Computing Machinery (ACM)
Publisher Date 2015-12-02
Publisher Place New York
Access Restriction One Nation One Subscription (ONOS)
Subject Keyword GSP VCG Bidder optimality Competitive equilibrium Envy freeness Expressiveness General auction mechanism
Content Type Text
Resource Type Article
Subject Economics and Econometrics Marketing Computational Mathematics Statistics and Probability Computer Science
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