Motivated by recent research on combinatorial markets with endowed valuations
by (Babaioff et al., EC 2018) and (Ezra et al., EC 2020), we introduce a notion
of perturbation stability in Combinatorial Auctions (CAs) and study the extend
to which stability helps in social welfare maximization and mechanism design. A
CA is γ-stable if the optimal solution is resilient to
inflation, by a factor of γ≥1, of any bidder's valuation for any
single item. On the positive side, we show how to compute efficiently an
optimal allocation for 2-stable subadditive valuations and that a Walrasian
equilibrium exists for 2-stable submodular valuations. Moreover, we show that a
Parallel 2nd Price Auction (P2A) followed by a demand query for each bidder is
truthful for general subadditive valuations and results in the optimal
allocation for 2-stable submodular valuations. To highlight the challenges
behind optimization and mechanism design for stable CAs, we show that a
Walrasian equilibrium may not exist for γ-stable XOS valuations for any
γ, that a polynomial-time approximation scheme does not exist for
(2−ϵ)-stable submodular valuations, and that any DSIC mechanism that
computes the optimal allocation for stable CAs and does not use demand queries
must use exponentially many value queries. We conclude with analyzing the Price
of Anarchy of P2A and Parallel 1st Price Auctions (P1A) for CAs with stable
submodular and XOS valuations. Our results indicate that the quality of
equilibria of simple non-truthful auctions improves only for γ-stable
instances with γ≥3