A Transformer-Based Neural Network for Optimal Deterministic-Allocation and Anonymous Joint Auction Design

Fuente: arXiv
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Hauptverfasser: Zhang, Zhen, Liu, Luowen, Zhang, Wanzhi, Guo, Zitian, Huang, Kun, Qi, Qi, Liu, Qiang, Wang, Xingxing
Format: Preprint
Veröffentlicht: 2025
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author Zhang, Zhen
Liu, Luowen
Zhang, Wanzhi
Guo, Zitian
Huang, Kun
Qi, Qi
Liu, Qiang
Wang, Xingxing
author_facet Zhang, Zhen
Liu, Luowen
Zhang, Wanzhi
Guo, Zitian
Huang, Kun
Qi, Qi
Liu, Qiang
Wang, Xingxing
contents With the advancement of machine learning, an increasing number of studies are employing automated mechanism design (AMD) methods for optimal auction design. However, all previous AMD architectures designed to generate optimal mechanisms that satisfy near dominant strategy incentive compatibility (DSIC) fail to achieve deterministic allocation, and some also lack anonymity, thereby impacting the efficiency and fairness of advertising allocation. This has resulted in a notable discrepancy between the previous AMD architectures for generating near-DSIC optimal mechanisms and the demands of real-world advertising scenarios. In this paper, we prove that in all online advertising scenarios, previous non-deterministic allocation methods lead to the non-existence of feasible solutions, resulting in a gap between the rounded solution and the optimal solution. Furthermore, we propose JTransNet, a transformer-based neural network architecture, designed for optimal deterministic-allocation and anonymous joint auction design. Although the deterministic allocation module in JTransNet is designed for the latest joint auction scenarios, it can be applied to other non-deterministic AMD architectures with minor modifications. Additionally, our offline and online data experiments demonstrate that, in joint auction scenarios, JTransNet significantly outperforms baseline methods in terms of platform revenue, resulting in a substantial increase in platform earnings.
format Preprint
id arxiv_https___arxiv_org_abs_2506_02435
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A Transformer-Based Neural Network for Optimal Deterministic-Allocation and Anonymous Joint Auction Design
Zhang, Zhen
Liu, Luowen
Zhang, Wanzhi
Guo, Zitian
Huang, Kun
Qi, Qi
Liu, Qiang
Wang, Xingxing
Computer Science and Game Theory
With the advancement of machine learning, an increasing number of studies are employing automated mechanism design (AMD) methods for optimal auction design. However, all previous AMD architectures designed to generate optimal mechanisms that satisfy near dominant strategy incentive compatibility (DSIC) fail to achieve deterministic allocation, and some also lack anonymity, thereby impacting the efficiency and fairness of advertising allocation. This has resulted in a notable discrepancy between the previous AMD architectures for generating near-DSIC optimal mechanisms and the demands of real-world advertising scenarios. In this paper, we prove that in all online advertising scenarios, previous non-deterministic allocation methods lead to the non-existence of feasible solutions, resulting in a gap between the rounded solution and the optimal solution. Furthermore, we propose JTransNet, a transformer-based neural network architecture, designed for optimal deterministic-allocation and anonymous joint auction design. Although the deterministic allocation module in JTransNet is designed for the latest joint auction scenarios, it can be applied to other non-deterministic AMD architectures with minor modifications. Additionally, our offline and online data experiments demonstrate that, in joint auction scenarios, JTransNet significantly outperforms baseline methods in terms of platform revenue, resulting in a substantial increase in platform earnings.
title A Transformer-Based Neural Network for Optimal Deterministic-Allocation and Anonymous Joint Auction Design
topic Computer Science and Game Theory
url https://arxiv.org/abs/2506.02435