Incentive-Compatible Learning of Reserve Prices for Repeated Auctions

2021 ◽  
Author(s):  
Yash Kanoria ◽  
Hamid Nazerzadeh
Keyword(s):  
Strategic Behavior ◽  
Online Advertising ◽  
Reserve Price ◽  
Incentive Compatible ◽  
Reserve Prices

How can an auctioneer optimize revenue by learning the reserve prices from the bids in the previous auctions? How should the long-term incentives and strategic behavior of the bidders be taken into account? Motivated in part by applications in online advertising, in “Incentive-Compatible Learning of Reserve Prices for Repeated Auctions,” Kanoria and Nazerzadeh investigate these questions. They show that if a seller attempts to dynamically update a common reserve price using the bidding history, buyers will shade their bids, which can hurt the revenue. However, when there is more than one buyer, using personalized reserve prices, the auctioneer can achieve a near-optimal revenue. In their proposed mechanism, the personal reserve price for each buyer is determined using the historical bids of other buyers.

scholarly journals Dynamic Incentive-Aware Learning: Robust Pricing in Contextual Auctions

2020 ◽  
Author(s):  
Negin Golrezaei ◽  
Adel Javanmard ◽  
Vahab Mirrokni
Keyword(s):  
Decision Maker ◽  
Strategic Behavior ◽  
Learning Algorithm ◽  
Online Advertising ◽  
Ground Truth ◽  
Decision Makers ◽  
Effective Learning ◽  
Reserve Prices ◽  
Feedback Data ◽  
Over Time

In many practical settings, the decision makers have to learn their best actions by experimenting with possible options and collecting feedback (data) over time. It is often assumed that the collected data can be trusted as they reflect the ground truth. But this assumption is violated when the data are generated by strategic players. Consider online advertising market in which the ad exchange (decision maker) aims at learning the best reserve prices in the repeated auctions. In this setting, the data are advertisers’ submitted bids. Such data can be strategically corrupted by advertisers to trick the learning algorithm of the ad exchange to offer them lower reserve prices in the future auctions. In “Dynamic Incentive-Aware Learning: Robust Pricing in Contextual Auctions,” N. Golrezaei, A. Javanmard, and V. Mirrokni design effective learning algorithms with sublinear regret in such environments that are robust to the strategic behavior of the players.

scholarly journals Design of an Analysis Model for Strategic Behavior in the Digital Economy

2020 ◽  
Vol 8 (2) ◽  
pp. p1
Author(s):  
Miguel Martin-Valmayor ◽  
Luis A. Gil-Alana
Keyword(s):  
Strategic Behavior ◽  
A Priori ◽  
Business Plan ◽  
A Posteriori ◽  
Analysis Model ◽  
Strategic Decisions ◽  
The Sustainable Development ◽  
Conflicting Objectives ◽  
Potential Impact

Nowadays, multi-criteria decision-making techniques are highly developed, and are widely applied in multiple fields. They model and solve decisional problems by optimising multiple conflicting objectives. These techniques are very useful because they simultaneously analyse all the different criteria, and select the best alternatives according to the decision-maker’s objectives and preferences. An important issue in this context is the adequacy of the structure of corporate long-term financing and its potential impact on the sustainable development of the long-term business plan. The purpose of this study is to advance the analysis of these strategic decisions, measuring the a posteriori results and analysing their coherence with the strategies followed a priori. To do this, sustainable strategic decisions will be mathematically modelled and parametrised, creating a system to study the preferences followed and to describe the corporate behaviour. This system is applied as a case example for two leading companies in the digital sector, and the corresponding results over the last few years are evaluated.

scholarly journals Different Approaches Towards Electricity Transmission Expansion

2003 ◽  
Vol 2 (3) ◽  
Author(s):  
Juan Rosellón
Keyword(s):  
Strategic Behavior ◽  
Social Cost ◽  
Transmission Network ◽  
Electricity Transmission ◽  
Transmission Expansion ◽  
Independent System Operator ◽  
System Operator ◽  
Transmission Rights ◽  
Intense Debate

There is an intense debate regarding the best way to attract investment for the long-term expansion of an electricity transmission network. We study three hypotheses: the long-term financialtransmission- right hypothesis; the incentive-regulation hypothesis; and the market-power hypothesis. The first approach derives optimal transmission expansion through auctions of longterm financial transmission rights by an independent system operator. The second provides a Transco with incentives to expand the network by making it face the entire social cost of congestion. The third approach defines optimal transmission expansion according to the strategic behavior of generators. This paper discusses the analytical and practical strengths and weaknesses of each approach.

Revenue Management with Repeated Customer Interactions

2020 ◽  
Author(s):  
Andre P. Calmon ◽  
Florin D. Ciocan ◽  
Gonzalo Romero
Keyword(s):  
Revenue Management ◽  
Online Advertising ◽  
Management Problem ◽  
Natural Conditions ◽  
Short Term ◽  
Performance Guarantees ◽  
Look Ahead ◽  
Myopic Policies

Motivated by online advertising, we model and analyze a revenue management problem where a platform interacts with a set of customers over a number of periods. Unlike traditional network revenue management, which treats the interaction between platform and customers as one-shot, we consider stateful customers who can dynamically change their goodwill toward the platform depending on the quality of their past interactions. Customer goodwill further determines the amount of budget that they allocate to the platform in the future. These dynamics create a trade-off between the platform myopically maximizing short-term revenues, versus maximizing the long-term goodwill of its customers to collect higher future revenues. We identify a set of natural conditions under which myopic policies that ignore the budget dynamics are either optimal or admit parametric guarantees; such simple policies are particularly desirable since they do not require the platform to learn the parameters of each customer dynamic and only rely on data that is readily available to the platform. We also show that, if these conditions do not hold, myopic and finite look-ahead policies can perform arbitrarily poorly in this repeated setting. From an optimization perspective, this is one of a few instances where myopic policies are optimal or have parametric performance guarantees for a dynamic program with nonconvex dynamics. We extend our model to the cases where supply varies over time and where customers may not interact with the platform in every period. This paper was accepted by Chung Piaw Teo, optimization.

Russian Federation and options for change towards the international system

2020 ◽  
pp. 149
Author(s):  
Marwan Awni Kamel ◽  
Nawar Amer Shaker
Keyword(s):  
Russian Federation ◽  
Strategic Behavior ◽  
International System ◽  
Current Status ◽  
The Russian Federation ◽  
A Current

This study is specialized in researching and analyzing the options of the Russian Federation on the issue of change in the international system by focusing on two main options, each of which represents a long-term strategic behavior. The first is the option of the Russian Federation as an amendment force in the international system, and the second is the option of the Russian Federation as a force of a current status in the International system .

Constitutional Innovation in Governing the Metropolis

City, State ◽  
2020 ◽  
pp. 103-150
Author(s):  
Ran Hirschl
Keyword(s):  
Mexico City ◽  
New World ◽  
Strategic Behavior ◽  
Buenos Aires ◽  
Global South ◽  
Incentive Structures ◽  
National Economic ◽  
The Status ◽  
New Ideas

This chapter contrasts the status of metropolises in “old world” constitutional orders with their status in “new world” constitutional orders. It focuses largely on the Global South—where new ideas about the constitutional governance of the metropolis are more likely to emerge. From Asia to Latin America and parts of Africa, innovative, sometimes radical, constitutional measures have been introduced, some with more success than others, to address the metropolis issue. The chapter explores several examples of countries in Asia (Japan, South Korea, and China) in which central governments’ constitutional support of megacities reflects astute, long-term planning for regional or national economic growth. It further shows how South Africa’s constitutionalization of city power as part of its 1996 constitutional transformation is arguably the most effective of these attempts to date. In other Global South settings—notably India and Brazil—constitutional experimentation with city emancipation has succumbed to deeply engrained intergovernmental hierarchies. And in yet other settings strategic behavior and colliding incentive structures have driven attempts to either strengthen (e.g., Mexico City, Buenos Aires) or weaken (e.g., Nairobi) megacities.

Incorporating long-term effects in determining the effectiveness of different types of online advertising

2011 ◽  
Vol 22 (4) ◽  
pp. 327-340 ◽  
Author(s):  
Ralph Breuer ◽  
Malte Brettel ◽  
Andreas Engelen
Keyword(s):  
Online Advertising ◽  
Long Term Effects ◽  
Different Types
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