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Best-response dynamics in combinatorial auctions with item bidding

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  • Dütting, Paul
  • Kesselheim, Thomas

Abstract

In a combinatorial auction with item bidding, agents participate in multiple single-item second-price auctions at once. As some items might be substitutes, agents need to strategize in order to maximize their utilities. A number of results indicate that high social welfare can be achieved this way, giving bounds on the welfare at equilibrium. Recently, however, criticism has been raised that equilibria of this game are hard to compute and therefore unlikely to be attained.

Suggested Citation

  • Dütting, Paul & Kesselheim, Thomas, 2022. "Best-response dynamics in combinatorial auctions with item bidding," Games and Economic Behavior, Elsevier, vol. 134(C), pages 428-448.
    • Handle: RePEc:eee:gamebe:v:134:y:2022:i:c:p:428-448
    DOI: 10.1016/j.geb.2020.09.006
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    References listed on IDEAS

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    1. Paul Milgrom, 2000. "Putting Auction Theory to Work: The Simultaneous Ascending Auction," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 245-272, April.
    2. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521536721.
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