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. - (2023). [10.1287/moor.2023.1351]
Bilateral Trade: A Regret Minimization Perspective
Federico Fusco
;Stefano Leonardi
2023
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.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.