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Learning to bid in revenue-maximizing auctions

  • Criteo AI Lab
  • ENS Paris-Saclay
  • University of California, Berkeley

Research output: Contribution to journal › Conference article › peer-review

11 Citations (Scopus)

Abstract

We consider the problem of the optimization of bidding strategies in prior-dependent revenuemaximizing auctions, when the seller fixes the reserve prices based on the bid distributions. Our study is done in the setting where one bidder is strategic. Using a variational approach, we study the complexity of the original objective and we introduce a relaxation of the objective functional in order to use gradient descent methods. Our approach is simple, general and can be applied to various value distributions and revenuemaximizing mechanisms. The new strategies we derive yield massive uplifts compared to the traditional truthfully bidding strategy.

Original languageEnglish
Pages (from-to)4781-4789
Number of pages9
JournalProceedings of Machine Learning Research
Volume97
Publication statusPublished - 1 Jan 2019
Externally publishedYes
Event36th International Conference on Machine Learning, ICML 2019 - Long Beach, United States
Duration: 9 Jun 2019 → 15 Jun 2019

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