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Duality for Optimal Multi-Item, Multi-Bidder Auction Design: Revenue Certificates through Deep Learning

arXiv 2606.10112 ↗First posted 8 Jun 2026cs.GT cs.AI cs.LGcited by 0

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Abstract (arXiv)

Characterizing revenue-optimal auctions for multi-item, multi-bidder settings remains a fundamental open problem, with no known closed-form solution existing beyond restrictive binary-type instances. This has motivated interest in computational approaches to optimal auction design. In this paper, we introduce the first computational framework that directly tackles the dual problem for multi-item, multi-bidder auctions and dominant-strategy incentive compatibility (DSIC), generating certified revenue upper bounds. Our approach parametrizes Lagrange multipliers with a structurally guaranteed strict flow-conservation property using neural networks, enabling efficient optimization over feasible dual solutions via gradient descent. To bridge the gap between discrete computational methods and theoretical guarantees for continuous types, we develop a novel lifting technique that maps dual certificates from coarse discretizations to fine refinements. We prove that lifting gives valid revenue upper bounds for multi-item, multi-bidder auctions with continuous uniform valuations. Furthermore, we give a generalized lifting construction for arbitrary continuous distributions and demonstrate that these lifted duals converge to the revenue of the original continuous problem in the discrete limit. We validate this computational framework for the dual auction design problem by recovering known analytical mechanisms for canonical instances. For multi-item multi-bidder problems, our framework establishes a small gap between the optimal revenue and best-known DSIC mechanisms, providing computational certificates of near-optimality.

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References · 14

  1. 2016Optimization Methods for Large-Scale Machine Learningcited by 1,150
  2. 2017Optimal Auctions through Deep Learning: Advances in Differentiable Economicscited by 38
  3. 2014Complexity of Mechanism Designcited by 33
  4. 2018Automated Mechanism Design via Neural Networkscited by 32
  5. 2020Auction learning as a two-player gamecited by 29
  6. 2023A Scalable Neural Network for DSIC Affine Maximizer Auction Designcited by 24
  7. 2022Differentiable Economics for Randomized Affine Maximizer Auctionscited by 22
  8. 2020Certifying Strategyproof Auction Networkscited by 21
  9. 2014Strong Duality for a Multiple-Good Monopolistcited by 17
  10. 2014Duality and Optimality of Auctions for Uniform Distributionscited by 12
  11. 2018A Duality-Based Unified Approach to Bayesian Mechanism Designcited by 9
  12. 2025BundleFlow: Deep Menus for Combinatorial Auctions by Diffusion-Based Optimizationcited by 6
2 more
  1. 2017Generalizing Virtual Values to Multidimensional Auctions: a Non-Myersonian Approachcited by 1
  2. 2022Beckmann's approach to multi-item multi-bidder auctionscited by 1

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