The sample complexity of auctions with side information

Traditionally, the Bayesian optimal auction design problem has been considered either when the bidder values are i.i.d, or when each bidder is individually identifiable via her value distribution. The latter is a reasonable approach when the bidders can be classified into a few categories, but there are many instances where the classification of bidders is a continuum. For example, the classification of the bidders may be based on their annual income, their propensity to buy an item based on past behavior, or in the case of ad auctions, the click through rate of their ads. We introduce an alternate model that captures this aspect, where bidders are a priori identical, but can be distinguished based (only) on some side information the auctioneer obtains at the time of the auction. We extend the sample complexity approach of Dhangwatnotai et al. and Cole and Roughgarden to this model and obtain almost matching upper and lower bounds. As an aside, we obtain a revenue monotonicity lemma which may be of independent interest. We also show how to use Empirical Risk Minimization techniques to improve the sample complexity bound of Cole and Roughgarden for the nonidentical but independent value distribution case.link_to_OA_fulltex

Tight Approximation Bounds for Maximum Multi-Coverage

29 pagesInternational audienceIn the classic maximum coverage problem, we are given subsets $T_1, \dots, T_m$ of a universe $[n]$ along with an integer $k$ and the objective is to find a subset $S \subseteq [m]$ of size $k$ that maximizes $C(S) := |\cup_{i \in S} T_i|$. It is well-known that the greedy algorithm for this problem achieves an approximation ratio of $(1-e^{-1})$ and there is a matching inapproximability result. We note that in the maximum coverage problem if an element $e \in [n]$ is covered by several sets, it is still counted only once. By contrast, if we change the problem and count each element $e$ as many times as it is covered, then we obtain a linear objective function, $C^{(\infty)}(S) = \sum_{i \in S} |T_i|$, which can be easily maximized under a cardinality constraint. We study the maximum $\ell$-multi-coverage problem which naturally interpolates between these two extremes. In this problem, an element can be counted up to $\ell$ times but no more; hence, we consider maximizing the function $C^{(\ell)}(S) = \sum_{e \in [n]} \min\{\ell, |\{i \in S : e \in T_i\}| \}$, subject to the constraint $|S| \leq k$. Note that the case of $\ell = 1$ corresponds to the standard maximum coverage setting and $\ell = \infty$ gives us a linear objective. We develop an efficient approximation algorithm that achieves an approximation ratio of $1 - \frac{\ell^{\ell}e^{-\ell}}{\ell!}$ for the $\ell$-multi-coverage problem. In particular, when $\ell = 2$, this factor is $1-2e^{-2} \approx 0.73$ and as $\ell$ grows the approximation ratio behaves as $1 - \frac{1}{\sqrt{2\pi \ell}}$. We also prove that this approximation ratio is tight, i.e., establish a matching hardness-of-approximation result, under the Unique Games Conjecture