On Revenue Optimal Combinatorial Auctions - IFP Group at the ...
On Revenue Optimal Combinatorial Auctions - IFP Group at the ...
On Revenue Optimal Combinatorial Auctions - IFP Group at the ...
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Wh<strong>at</strong> Went Wrong?<br />
An arbitrary joint distribution of (bundles, values) causes<br />
problems.<br />
If w n (b n , v n ) is increasing in b n , buyer n will bid for a larger bundle.<br />
A possible fix - assume B n and X n to be independent.<br />
Works well m<strong>at</strong>hem<strong>at</strong>ically, but an unreasonable assumption.<br />
A reasonable assumption - <strong>the</strong> value of <strong>the</strong> larger of two bundles<br />
is likely to be higher.<br />
Wh<strong>at</strong> is <strong>the</strong> precise condition for optimality?
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