Mechanism Design via Optimal Transport

Optimal mechanisms have been provided in quite general multi-item settings [Cai et al. 2012b, as long as each bidder's type distribution is given explicitly by listing every type in the support along with its associated probability. In the implicit setting, e.g. when the bidders have additive valuations with independent and/or continuous values for the items, these results do not apply, and it was recently shown that exact revenue optimization is intractable, even when there is only one bidder [Daskalakis et al. 2013]. Even for item distributions with special structure, optimal mechanisms have been surprisingly rare [Manelli and Vincent 2006] and the problem is challenging even in the two-item case [Hart and Nisan 2012]. In this paper, we provide a framework for designing optimal mechanisms using optimal transport theory and duality theory. We instantiate our framework to obtain conditions under which only pricing the grand bundle is optimal in multi-item settings (complementing the work of [Manelli and Vincent 2006]), as well as to characterize optimal two-item mechanisms. We use our results to derive closed-form descriptions of the optimal mechanism in several two-item settings, exhibiting also a setting where a continuum of lotteries is necessary for revenue optimization but a closed-form representation of the mechanism can still be found efficiently using our framework.Alfred P. Sloan Foundation (Fellowship)Microsoft Research (Faculty Fellowship)National Science Foundation (U.S.) (CAREER Award CCF-0953960)National Science Foundation (U.S.) (Award CCF-1101491)Hertz Foundation (Daniel Stroock Fellowship

Strong Duality for a Multiple-Good Monopolist

We characterize optimal mechanisms for the multiple-good monopoly problem and provide a framework to find them. We show that a mechanism is optimal if and only if a measure $\mu$ derived from the buyer's type distribution satisfies certain stochastic dominance conditions. This measure expresses the marginal change in the seller's revenue under marginal changes in the rent paid to subsets of buyer types. As a corollary, we characterize the optimality of grand-bundling mechanisms, strengthening several results in the literature, where only sufficient optimality conditions have been derived. As an application, we show that the optimal mechanism for $n$ independent uniform items each supported on $[c,c+1]$ is a grand-bundling mechanism, as long as $c$ is sufficiently large, extending Pavlov's result for $2$ items [Pavlov'11]. At the same time, our characterization also implies that, for all $c$ and for all sufficiently large $n$, the optimal mechanism for $n$ independent uniform items supported on $[c,c+1]$ is not a grand bundling mechanism

Energy-scales convergence for optimal and robust quantum transport in photosynthetic complexes

Underlying physical principles for the high efficiency of excitation energy transfer in light-harvesting complexes are not fully understood. Notably, the degree of robustness of these systems for transporting energy is not known considering their realistic interactions with vibrational and radiative environments within the surrounding solvent and scaffold proteins. In this work, we employ an efficient technique to estimate energy transfer efficiency of such complex excitonic systems. We observe that the dynamics of the Fenna-Matthews-Olson (FMO) complex leads to optimal and robust energy transport due to a convergence of energy scales among all important internal and external parameters. In particular, we show that the FMO energy transfer efficiency is optimum and stable with respect to the relevant parameters of environmental interactions and Frenkel-exciton Hamiltonian including reorganization energy $\lambda$, bath frequency cutoff $\gamma$, temperature $T$, bath spatial correlations, initial excitations, dissipation rate, trapping rate, disorders, and dipole moments orientations. We identify the ratio of \lambda T/\gamma\*g as a single key parameter governing quantum transport efficiency, where g is the average excitonic energy gap.Comment: minor revisions, removing some figures, 19 pages, 19 figure