research-article

Tight information-theoretic lower bounds for welfare maximization in combinatorial auctions

Authors:

Vahab Mirrokni,

Michael Schapira,

Jan VondrakAuthors Info & Claims

EC '08: Proceedings of the 9th ACM conference on Electronic commerce

Pages 70 - 77

https://doi.org/10.1145/1386790.1386805

Published: 08 July 2008 Publication History

Abstract

We provide tight information-theoretic lower bounds for the welfare maximization problem in combinatorial auctions. In this problem, the goal is to partition m items among k bidders in a way that maximizes the sum of bidders' values for their allocated items. Bidders have complex preferences over items expressed by valuation functions that assign values to all subsets of items.

We study the "black box" setting in which the auctioneer has oracle access to the valuation functions of the bidders. In particular, we explore the well-known value query model in which the permitted query to a valuation function is in the form of a subset of items, and the reply is the value assigned to that subset of items by the valuation function.

We consider different classes of valuation functions: submodular,subadditive, and superadditive. For these classes, it has been shown that one can achieve approximation ratios of 1 -- 1/e, 1/√m, and √ m/m, respectively, via a polynomial (in k and m) number of value queries. We prove that these approximation factors are essentially the best possible: For any fixed ε > 0, a (1--1/e + ε)-approximation for submodular valuations or an 1/_m1/2-ε-approximation for subadditive valuations would require exponentially many value queries, and a log^1+ε m/ m-approximation for superadditive valuations would require a superpolynomial number of value queries.

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Cited By

Qiu FWeinberg SMohar BShinkar IO'Donnell R(2024)Settling the Communication Complexity of VCG-Based Mechanisms for All Approximation GuaranteesProceedings of the 56th Annual ACM Symposium on Theory of Computing10.1145/3618260.3649706(1192-1203)Online publication date: 10-Jun-2024
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Index Terms

Tight information-theoretic lower bounds for welfare maximization in combinatorial auctions
1. Theory of computation
  1. Design and analysis of algorithms

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Published In

cover image ACM Conferences

EC '08: Proceedings of the 9th ACM conference on Electronic commerce

July 2008

332 pages

ISBN:9781605581699

DOI:10.1145/1386790

General Chair:
Lance Fortnow
Northwestern University, USA
,
Program Chairs:
John Riedl
University of Minnesota, USA
,
Tuomas Sandholm
Carnegie-Mellon University, USA

Copyright © 2008 ACM.

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Published: 08 July 2008

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July 8 - 12, 2008

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https://dl.acm.org/doi/10.1145/3618260.3649706
Mavrov IMunagala KShen YLeyton-Brown KSamuelson LHartline J(2023)Fair Multiwinner Elections with Allocation ConstraintsProceedings of the 24th ACM Conference on Economics and Computation10.1145/3580507.3597685(964-990)Online publication date: 9-Jul-2023
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Zdun UQueval PSimhandl GScandariato RChakravarty SJelic MJovanovic A(2023)Microservice Security Metrics for Secure Communication, Identity Management, and ObservabilityACM Transactions on Software Engineering and Methodology10.1145/353218332:1(1-34)Online publication date: 13-Feb-2023
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