TY - GEN
T1 - Learning to bid in revenue maximizing auction
AU - Nedelec, Thomas
AU - Karoui, Noureddine El
AU - Perchet, Vianney
N1 - Publisher Copyright:
© 2019 IW3C2 (International World Wide Web Conference Committee), published under Creative Commons CC-BY 4.0 License.
PY - 2019/5/13
Y1 - 2019/5/13
N2 - We consider the problem of the optimization of bidding strategies in prior-dependent revenue-maximizing 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 revenue-maximizing mechanisms. The new strategies we derive yield massive uplifts compared to the traditional truthfully bidding strategy.
AB - We consider the problem of the optimization of bidding strategies in prior-dependent revenue-maximizing 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 revenue-maximizing mechanisms. The new strategies we derive yield massive uplifts compared to the traditional truthfully bidding strategy.
UR - https://www.scopus.com/pages/publications/85066897509
U2 - 10.1145/3308560.3316527
DO - 10.1145/3308560.3316527
M3 - Conference contribution
AN - SCOPUS:85066897509
T3 - The Web Conference 2019 - Companion of the World Wide Web Conference, WWW 2019
SP - 934
EP - 935
BT - The Web Conference 2019 - Companion of the World Wide Web Conference, WWW 2019
PB - Association for Computing Machinery, Inc
T2 - 2019 World Wide Web Conference, WWW 2019
Y2 - 13 May 2019 through 17 May 2019
ER -