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Price of Anarchy for Greedy Auctions

2009/09/04 by Brendan Lucier, Allan Borodin, Lucier, Brendan +1
Decision Sciences · Economics, Econometrics and Finance · #Auction Theory and Applications #Computer Science and Game Theory (cs.GT) #Economic theories and models #FOS: Computer and information sciences #Game Theory and Voting Systems

paper · pdf · doi:10.48550/arxiv.0909.0892

openalex publication_date 2009/09/04 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

We consider auctions in which greedy algorithms, paired with first-price or critical-price payment rules, are used to resolve multi-parameter combinatorial allocation problems. We study the price of anarchy for social welfare in such auctions. We show for a variety of equilibrium concepts, including Bayes-Nash equilibrium and correlated equilibrium, the resulting price of anarchy bound is close to the approximation factor of the underlying greedy algorithm.

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