Prior-independent Auctions for Risk-averse Agents

Hu Fu; Jason Hartline; Darrell Hoy

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arXiv · 1301.0401

Prior-independent Auctions for Risk-averse Agents

Hu Fu·Jason Hartline·Darrell Hoy

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Abstract

We study simple and approximately optimal auctions for agents with a particular form of risk-averse preferences. We show that, for symmetric agents, the optimal revenue (given a prior distribution over the agent preferences) can be approximated by the first-price auction (which is prior independent), and, for asymmetric agents, the optimal revenue can be approximated by an auction with simple form. These results are based on two technical methods. The first is for upper-bounding the revenue from a risk-averse agent. The second gives a payment identity for mechanisms with pay-your-bid semantics.

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BibTeX RIS

Hu Fu, Jason Hartline, Darrell Hoy. 2013-01-03. Prior-independent Auctions for Risk-averse Agents. https://arxiv.org/abs/1301.0401

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