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Title: The menu-complexity of ``one-and-a-half'' dimensional mechanism design
We study the menu complexity of optimal and approximately-optimal auctions in the context of the ``FedEx'' problem, a so-called ``one-and-a-half-dimensional'' setting where a single bidder has both a value and a deadline for receiving an item [FGKK 16]. The menu complexity of an auction is equal to the number of distinct (allocation, price) pairs that a bidder might receive [HN 13]. We show the following when the bidder has $$n$$ possible deadlines: 1) Exponential menu complexity is necessary to be exactly optimal: There exist instances where the optimal mechanism has menu complexity $$\geq 2^n-1$$. This matches exactly the upper bound provided by Fiat et al.'s algorithm, and resolves one of their open questions [FGKK 16]. 2) Fully polynomial menu complexity is necessary and sufficient for approximation: For all instances, there exists a mechanism guaranteeing a multiplicative $$(1-\epsilon)$$-approximation to the optimal revenue with menu complexity $$O(n^{3/2}\sqrt{\frac{\min\{n/\epsilon,\ln(v_{\max})\}}{\epsilon}}) = O(n^2/\epsilon)$$, where $$v_{\max}$$ denotes the largest value in the support of integral distributions. \item There exist instances where any mechanism guaranteeing a multiplicative $(1-O(1/n^2))$-approximation to the optimal revenue requires menu complexity $$\Omega(n^2)$$. Our main technique is the polygon approximation of concave functions [Rote 91], and our results here should be of independent interest. We further show how our techniques can be used to resolve an open question of [DW 17] on the menu complexity of optimal auctions for a budget-constrained buyer.  more » « less
Award ID(s):
1717899
PAR ID:
10069454
Author(s) / Creator(s):
; ;
Date Published:
Journal Name:
Symposium on Discrete Algorithms
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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