Optimal Competitive Auctions

We study the design of truthful auctions for selling identical items in unlimited supply (e.g., digital goods) to n unit demand buyers. This classic problem stands out from profit-maximizing auction design literature as it requires no probabilistic assumptions on buyers' valuations and employs the framework of competitive analysis. Our objective is to optimize the worst-case performance of an auction, measured by the ratio between a given benchmark and revenue generated by the auction. We establish a sufficient and necessary condition that characterizes competitive ratios for all monotone benchmarks. The characterization identifies the worst-case distribution of instances and reveals intrinsic relations between competitive ratios and benchmarks in the competitive analysis. With the characterization at hand, we show optimal competitive auctions for two natural benchmarks. The most well-studied benchmark $\mathcal{F}^{(2)}(\cdot)$ measures the envy-free optimal revenue where at least two buyers win. Goldberg et al. [13] showed a sequence of lower bounds on the competitive ratio for each number of buyers n. They conjectured that all these bounds are tight. We show that optimal competitive auctions match these bounds. Thus, we confirm the conjecture and settle a central open problem in the design of digital goods auctions. As one more application we examine another economically meaningful benchmark, which measures the optimal revenue across all limited-supply Vickrey auctions. We identify the optimal competitive ratios to be $(\frac{n}{n-1})^{n-1}-1$ for each number of buyers n, that is $e-1$ as $n$ approaches infinity

Generalised Reichenbachian common cause systems

The principle of the common cause claims that if an improbable coincidence has occurred, there must exist a common cause. This is generally taken to mean that positive correlations between non-causally related events should disappear when conditioning on the action of some underlying common cause. The extended interpretation of the principle, by contrast, urges that common causes should be called for in order to explain positive deviations between the estimated correlation of two events and the expected value of their correlation. The aim of this paper is to provide the extended reading of the principle with a general probabilistic model, capturing the simultaneous action of a system of multiple common causes. To this end, two distinct models are elaborated, and the necessary and sufficient conditions for their existence are determined

Involutions on the Algebra of Physical Observables From Reality Conditions

Some aspects of the algebraic quantization programme proposed by Ashtekar are revisited in this article. It is proved that, for systems with first-class constraints, the involution introduced on the algebra of quantum operators via reality conditions can never be projected unambiguously to the algebra of physical observables, ie, of quantum observables modulo constraints. It is nevertheless shown that, under sufficiently general assumptions, one can still induce an involution on the algebra of physical observables from reality conditions, though the involution obtained depends on the choice of particular representatives for the equivalence classes of quantum observables and this implies an additional ambiguity in the quantization procedure suggested by Ashtekar.Comment: 19 pages, latex, no figure

Generalised Reichenbachian Common Cause Systems

The principle of the common cause claims that if an improbable coincidence has occurred, there must exist a common cause. This is generally taken to mean that positive correlations between non-causally related events should disappear when conditioning on the action of some underlying common cause. The extended interpretation of the principle, by contrast, urges that common causes should be called for in order to explain positive deviations between the estimated correlation of two events and the expected value of their correlation. The aim of this paper is to provide the extended reading of the principle with a general probabilistic model, capturing the simultaneous action of a system of multiple common causes. To this end, two distinct models are elaborated, and the necessary and sufficient conditions for their existence are determined