Conformal Online Auction Design

arXiv:2405.07038v1 Announce Type: cross
Abstract: This paper proposes the conformal online auction design (COAD), a novel mechanism for maximizing revenue in online auctions by quantifying the uncertainty in bidders' values without relying on assumptions about value distributions. COAD incorporates both the bidder and item features and leverages historical data to provide an incentive-compatible mechanism for online auctions. Unlike traditional methods for online auctions, COAD employs a distribution-free, prediction interval-based approach using conformal prediction techniques. This novel approach ensures that the …

abstract arxiv assumptions cs.gt cs.lg data design features historical data novel paper revenue stat.ml type uncertainty value values