Knightian Robustness from Regret Minimization

Alessandro Chiesa; Silvio Micali; Zeyuan Allen Zhu

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arXiv · 1403.6409

Knightian Robustness from Regret Minimization

Alessandro Chiesa·Silvio Micali·Zeyuan Allen Zhu

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Abstract

We consider auctions in which the players have very limited knowledge about their own valuations. Specifically, the only information that a Knightian player $i$ has about the profile of true valuations, $\theta^*$, consists of a set of distributions, from one of which $\theta_i^*$ has been drawn. We analyze the social-welfare performance of the VCG mechanism, for unrestricted combinatorial auctions, when Knightian players that either (a) choose a regret-minimizing strategy, or (b) resort to regret minimization only to refine further their own sets of undominated strategies, if needed. We prove that this performance is very good.

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BibTeX RIS

Alessandro Chiesa, Silvio Micali, Zeyuan Allen Zhu. 2014-03-25. Knightian Robustness from Regret Minimization. https://arxiv.org/abs/1403.6409

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