Data-Driven Mechanism Design: Jointly Eliciting Preferences and Information
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Abstract (arXiv)
We study mechanism design in environments where agents have private preferences and private information about a common payoff-relevant state. In such settings with multi-dimensional types, standard mechanisms fail to implement efficient allocations. We address this limitation by proposing data-driven mechanisms that condition transfers on additional post-allocation information, modeled as an estimator of the payoff-relevant state. Our mechanisms extend the classic Vickrey-Clarke-Groves framework. We show they achieve exact implementation in posterior equilibrium when the state is fully revealed or utilities are affine in an unbiased estimator. With a consistent estimator, they achieve approximate implementation that converges to exact implementation as the estimator converges, and we provide bounds on the convergence rate. We demonstrate applications to digital advertising auctions and AI shopping assistants, where user engagement naturally reveals relevant information, and to procurement auctions with consumer spot markets, where additional information arises from a pricing game played by the same agents.
Key facts. Cited by 7 papers in the map (data through 14 Oct 2026). First posted on arXiv 20 Dec 2024.
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Citing papers per year: 2025: 4; 2026: 3.
7 papers.
- 2025LLM-Auction: Generative Auction towards LLM-Native Advertisingcited by 12
- 2026Ad Insertion in LLM-Generated Responsescited by 8
- 2025MaxShapley: Towards Incentive-compatible Generative Search with Fair Context Attributioncited by 3
- 2025An Interpretable Automated Mechanism Design Framework with Large Language Modelscited by 2
- 2026The Endogeneity of Miscalibration: Impossibility and Escape in Scored Reportingcited by 2
- 2025Sponsored Questions and How to Auction Themcited by 1
- 2026Decentralized Aggregation of LLM Predictions via Wagering Mechanismscited by 0
- 2026Decentralized Aggregation of LLM Predictions via Wagering Mechanisms5 Jul 2026
- 2026The Endogeneity of Miscalibration: Impossibility and Escape in Scored Reporting8 May 2026
- 2026Ad Insertion in LLM-Generated Responses27 Jan 2026
- 2025LLM-Auction: Generative Auction towards LLM-Native Advertising11 Dec 2025
- 2025MaxShapley: Towards Incentive-compatible Generative Search with Fair Context Attribution5 Dec 2025
- 2025Sponsored Questions and How to Auction Them3 Dec 2025
- 2025An Interpretable Automated Mechanism Design Framework with Large Language Models16 Feb 2025