Bilateral trade, a fundamental topic in economics, models the problem of intermediating between two strategic agents, a seller and a buyer, willing to trade a good for which they hold private valuations. In this paper, we cast the bilateral trade problem in a regret minimization framework over T rounds of seller/buyer interactions, with no prior knowledge on their private valuations. Our main contribution is a complete characterization of the regret regimes for fixed-price mechanisms with different feedback models and private valuations, using as a benchmark the best fixed price in hindsight.

Bilateral Trade: A Regret Minimization Perspective / Cesa-Bianchi, Nicolò; Cesari, Tommaso; Colomboni, Roberto; Fusco, Federico; Leonardi, Stefano. - In: MATHEMATICS OF OPERATIONS RESEARCH. - ISSN 0364-765X. - 49:1(2024), pp. 171-203. [10.1287/moor.2023.1351]

Bilateral Trade: A Regret Minimization Perspective

Federico Fusco
;
Stefano Leonardi
2024

Abstract

Bilateral trade, a fundamental topic in economics, models the problem of intermediating between two strategic agents, a seller and a buyer, willing to trade a good for which they hold private valuations. In this paper, we cast the bilateral trade problem in a regret minimization framework over T rounds of seller/buyer interactions, with no prior knowledge on their private valuations. Our main contribution is a complete characterization of the regret regimes for fixed-price mechanisms with different feedback models and private valuations, using as a benchmark the best fixed price in hindsight.
2024
bilateral trade; online learning; partial feedback
01 Pubblicazione su rivista::01a Articolo in rivista
Bilateral Trade: A Regret Minimization Perspective / Cesa-Bianchi, Nicolò; Cesari, Tommaso; Colomboni, Roberto; Fusco, Federico; Leonardi, Stefano. - In: MATHEMATICS OF OPERATIONS RESEARCH. - ISSN 0364-765X. - 49:1(2024), pp. 171-203. [10.1287/moor.2023.1351]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1672003
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