2019
ICML
ICML 2019
Learning to bid in revenue-maximizing auctions
Abstract
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.
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Cross-Pollinator
— Artificial Intelligence, Computer Science, Computer Vision, Data Science & Analytics, Deep Learning, Healthcare & Medicine, Interdisciplinary, Knowledge & Reasoning, Machine Learning, Mathematics & Optimization, Natural Language Processing, Reinforcement Learning, Robotics, Security & Privacy