TY - CHAP
T1 - Multi-player and multi-round auctions with severely bounded communication
AU - Blumrosen, Liad
AU - Nisan, Noam
AU - Segal, Ilya
PY - 2003
Y1 - 2003
N2 - We study auctions in which bidders have severe constraints on the size of messages they are allowed to send to the auctioneer. In such auctions, each bidder has a set of k possible bids (i.e. he can send up to t = log(k) bits to the mechanism). This paper studies the loss of economic efficiency and revenue in such mechanisms, compared with the case of unconstrained communication. For any number of players, we present auctions that incur an efficiency loss and a revenue loss of O(1/k2), and we show that this upper bound is tight. When we allow the players to send their bits sequentially, we can construct even more efficient mechanisms, but only up to a factor of 2 in the amount of communication needed. We also show that when the players' valuations for the item are not independently distributed, we cannot do much better than a trivial mechanism.
AB - We study auctions in which bidders have severe constraints on the size of messages they are allowed to send to the auctioneer. In such auctions, each bidder has a set of k possible bids (i.e. he can send up to t = log(k) bits to the mechanism). This paper studies the loss of economic efficiency and revenue in such mechanisms, compared with the case of unconstrained communication. For any number of players, we present auctions that incur an efficiency loss and a revenue loss of O(1/k2), and we show that this upper bound is tight. When we allow the players to send their bits sequentially, we can construct even more efficient mechanisms, but only up to a factor of 2 in the amount of communication needed. We also show that when the players' valuations for the item are not independently distributed, we cannot do much better than a trivial mechanism.
UR - http://www.scopus.com/inward/record.url?scp=0142152741&partnerID=8YFLogxK
U2 - 10.1007/978-3-540-39658-1_12
DO - 10.1007/978-3-540-39658-1_12
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AN - SCOPUS:0142152741
SN - 3540200649
SN - 9783540200642
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 102
EP - 113
BT - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
A2 - di Battista, Giuseppe
A2 - Zwick, Uri
PB - Springer Verlag
ER -