Simultaneous ascending auctions present agents
with the exposure problem: bidding to acquire a
bundle risks the possibility of obtaining an undesired
subset of the goods. Auction theory provides
little guidance for dealing with this problem.
We present a new family of decisiontheoretic
bidding strategies that use probabilistic
predictions of final prices. We focus on selfconfirming
price distribution predictions, which
by definition turn out to be correct when all
agents bid decision-theoretically based on them.
Bidding based on these is provably not optimal in
general, but our experimental evidence indicates
the strategy can be quite effective compared to
other known methods.http://deepblue.lib.umich.edu/bitstream/2027.42/49509/1/ppsaa.pd