Pareto Efficient Auctions with Interest Rates

Authors

  • Gagan Goel Google Research
  • Vahab Mirrokni Google Research
  • Renato Paes Leme Google Research

DOI:

https://doi.org/10.1609/aaai.v33i01.33011989

Abstract

We consider auction settings in which agents have limited access to monetary resources but are able to make payments larger than their available resources by taking loans with a certain interest rate. This setting is a strict generalization of budget constrained utility functions (which corresponds to infinite interest rates). Our main result is an incentive compatible and Pareto-efficient auction for a divisible multi-unit setting with 2 players who are able to borrow money with the same interest rate. The auction is an ascending price clock auction that bears some similarities to the clinching auction but at the same time is a considerable departure from this framework: allocated goods can be de-allocated in future and given to other agents and prices for previously allocated goods can be raised.

Downloads

Published

2019-07-17

How to Cite

Goel, G., Mirrokni, V., & Leme, R. P. (2019). Pareto Efficient Auctions with Interest Rates. Proceedings of the AAAI Conference on Artificial Intelligence, 33(01), 1989-1995. https://doi.org/10.1609/aaai.v33i01.33011989

Issue

Section

AAAI Technical Track: Game Theory and Economic Paradigms