Designing Core-Selecting Payment Rules: A Computational Search Approach

• 成果类型: Article
• 署名作者: Bunz, Benedikt; Lubin, Benjamin; Seuken, Sven
• 署名单位: Stanford University; Boston University; University of Zurich
• 刊物名称: INFORMATION SYSTEMS RESEARCH
• ISSN/ISSBN: 1047-7047
• DOI: 10.1287/isre.2022.1108
• 发表日期: 2022
• 页码: 1157-1173
• 关键词: Auctions

摘要

We study the design of core-selecting payment rules for combinatorial auctions, a challenging setting where no strategyproof rules exist. We show that the rule most commonly used in practice, the Quadratic rule, can be improved on in terms of efficiency, incentives, and revenue. We present a new computational search framework for finding good mechanisms, and we apply it toward a search for good core-selecting rules. Within our framework, we use an algorithmic Bayes-Nash equilibrium solver to evaluate 366 rules across 31 settings to identify rules that outperformtheQuadratic rule. Ourmain finding is that our best-performing rules are large-style rules-that is, they provide bidders with large values with better incentives than does theQuadratic rule. Finally, we identify two particularlywell-performing rules and suggest that theymay be considered for practical implementation in place of theQuadratic rule.