Risk-Sensitive Lowest Unique Bid Auctions

Research output: Contribution to journalArticle

Abstract

A multi-item auction is a situation in which one or several auctioneers propose a set of items and bidders exert effort for each item in an attempt to win a prize or an item. Multi-item lowest unique bid auction have been proposed recently in online platforms. Decision to participate or not is costly and left to the bidders. However, finding an optimal bidding strategy is not a trivial task because of incomplete information, heterogeneous valuation and budget restrictions. In this paper we examine the attitude of the bidders towards the risk. In contrast to risk-neutral agents who bids very small values, the cumulative distribution and the bidding support of risk-sensitive agents are more distributed.

Original languageEnglish (US)
Pages (from-to)12273-12278
Number of pages6
JournalIFAC-PapersOnLine
Volume50
Issue number1
DOIs
StatePublished - Jul 2017

Keywords

  • LUBA
  • auction
  • game theory
  • learning
  • risk-sensitive

ASJC Scopus subject areas

  • Control and Systems Engineering

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