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Efficiency of the Generalized Second-Price Auction for Value Maximizers
- Publication Year :
- 2023
-
Abstract
- We study the price of anarchy of the generalized second-price auction where bidders are value maximizers (i.e., autobidders). We show that in general the price of anarchy can be as bad as $0$. For comparison, the price of anarchy of running VCG is $1/2$ in the autobidding world. We further show a fined-grained price of anarchy with respect to the discount factors (i.e., the ratios of click probabilities between lower slots and the highest slot in each auction) in the generalized second-price auction, which highlights the qualitative relation between the smoothness of the discount factors and the efficiency of the generalized second-price auction.
- Subjects :
- Computer Science - Computer Science and Game Theory
Subjects
Details
- Database :
- arXiv
- Publication Type :
- Report
- Accession number :
- edsarx.2310.03105
- Document Type :
- Working Paper