Statistically Truthful Auctions via Acceptance Rule

Fuente: arXiv
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Autores principales: Lotan, Roy Maor, Talgam-Cohen, Inbal, Romano, Yaniv
Formato: Preprint
Publicado: 2024
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author Lotan, Roy Maor
Talgam-Cohen, Inbal
Romano, Yaniv
author_facet Lotan, Roy Maor
Talgam-Cohen, Inbal
Romano, Yaniv
contents Auctions are key for maximizing sellers' revenue and ensuring truthful bidding among buyers. Recently, an approach known as differentiable economics based on machine learning (ML) has shown promise in learning powerful auction mechanisms for multiple items and participants. However, this approach has no guarantee of strategy-proofness at test time. Strategy-proofness is crucial as it ensures that buyers are incentivized to bid their true valuations, leading to optimal and fair auction outcomes without the risk of manipulation. In this work, we propose a formulation of statistical strategy-proofness for auction mechanisms. Specifically, we offer a method that bounds the regret -- quantifying deviation from truthful bidding -- below a pre-specified level with high probability. Building upon conformal prediction techniques, we develop an auction acceptance rule that leverages regret predictions to guarantee that the data-driven auction mechanism meets the statistical strategy-proofness requirement with high probability. Our method -- Statistically Truthful Auctions via Acceptance Rule (STAR) -- represents a practical middle-ground between two extremes: enforcing truthfulness -- zero-regret -- at the cost of significant revenue loss, and naively using ML to construct auctions with the hope of attaining low regret, with no test-time guarantees.
format Preprint
id arxiv_https___arxiv_org_abs_2405_12016
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Statistically Truthful Auctions via Acceptance Rule
Lotan, Roy Maor
Talgam-Cohen, Inbal
Romano, Yaniv
Computer Science and Game Theory
Machine Learning
Auctions are key for maximizing sellers' revenue and ensuring truthful bidding among buyers. Recently, an approach known as differentiable economics based on machine learning (ML) has shown promise in learning powerful auction mechanisms for multiple items and participants. However, this approach has no guarantee of strategy-proofness at test time. Strategy-proofness is crucial as it ensures that buyers are incentivized to bid their true valuations, leading to optimal and fair auction outcomes without the risk of manipulation. In this work, we propose a formulation of statistical strategy-proofness for auction mechanisms. Specifically, we offer a method that bounds the regret -- quantifying deviation from truthful bidding -- below a pre-specified level with high probability. Building upon conformal prediction techniques, we develop an auction acceptance rule that leverages regret predictions to guarantee that the data-driven auction mechanism meets the statistical strategy-proofness requirement with high probability. Our method -- Statistically Truthful Auctions via Acceptance Rule (STAR) -- represents a practical middle-ground between two extremes: enforcing truthfulness -- zero-regret -- at the cost of significant revenue loss, and naively using ML to construct auctions with the hope of attaining low regret, with no test-time guarantees.
title Statistically Truthful Auctions via Acceptance Rule
topic Computer Science and Game Theory
Machine Learning
url https://arxiv.org/abs/2405.12016