A heuristic for estimating Nash equilibria in first-price auctions with correlated values

08/10/2021
by   Benjamin Heymann, et al.
0

Our paper concerns the computation of Nash equilibria of first-price auctions with correlated values. While there exist several equilibrium computation methods for auctions with independent values, the correlation of the bidders' values introduces significant complications that render existing methods unsatisfactory in practice. Our contribution is a step towards filling this gap: inspired by the seminal fictitious play process of Brown and Robinson, we present a learning heuristic-that we call fictitious bidding (FB)-for estimating Bayes-Nash equilibria of first-price auctions with correlated values, and we assess the performance of this heuristic on several relevant examples.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
07/10/2022

The Price of Stability for First Price Auction

This paper establishes the Price of Stability (PoS) for First Price Auct...
research
12/04/2017

On the Geometry of Nash and Correlated Equilibria with Cumulative Prospect Theoretic Preferences

It is known that the set of all correlated equilibria of an n-player non...
research
09/22/2017

On the Existence and Structure of Mixed Nash Equilibria for In-Band Full-Duplex Wireless Networks

This article offers the first characterisation of mixed Nash equilibria ...
research
05/05/2015

Achieving a Hyperlocal Housing Price Index: Overcoming Data Sparsity by Bayesian Dynamical Modeling of Multiple Data Streams

Understanding how housing values evolve over time is important to policy...
research
03/07/2018

On the Efficiency of Nash Equilibria in Aggregative Charging Games

Several works have recently suggested to model the problem of coordinati...
research
06/04/2020

Two-Buyer Sequential Multiunit Auctions with No Overbidding

We study equilibria in two-buyer sequential second-price (or first-price...
research
03/07/2018

On the Efficiency of Nash Equilibria in Charging Games

We consider charging problems, where the goal is to coordinate the charg...

Please sign up or login with your details

Forgot password? Click here to reset