CS 700 Syllabus, Fall 2008

Lec. No. Date Key Topic Readings Auxiliary Materials Assignments
General Background Reading
Background Mechanism Design for Computerized Agents, by H. Varian, In Proc. USENIX Workshop on Electronic Commerce, July 11-12, 1995, New York.
Sponsored Search: A Brief History, by D. C. Fain and J. O. Pedersen. In Proc. Second Workshop on Sponsored Search Auctions, ACM EC'06.
Putting Auction Theory to Work by P. Milgrom, Chapter 1 in Putting Auction Theory to Work, Cambridge University Press (2004).
A Combinatorial Auction Mechanism for Airport Time Slot Allocation by S. J. Rassenti, V. L. Smith and R. L. Bulfin in The Bell Journal of Economics, Vol. 13, No. 2 (Autumn, 1982), pp. 402-417
Scientific Background for 2007 Nobel In Economic Sciences for mechanism design theory to Hurwicz, Maskin and Myerson
Introductory Lectures
1 Tuesday Sep-23 Game Theory and Introduction to Mechanism Design Introduction to Noncooperative Game Theory: Games in Normal Form, by Y. Shoham and K. Leyton-Brown, Chapter 3 in Multiagent Systems: Algorithmic, Game-Theoretic, and Logical Foundations, Cambridge University Press, to appear October 2008.
Mechanism Theory M. O. Jackson, Chapter in Encyclopedia of Life Support Stystems, U. Derigs (ed.), 2003.
Lecture 1 notes PDF Assignment 1 out (due sep-30) PDF
2 Tuesday Sep-30 Mechanism Design: Characterizations, Computational concerns Introduction to mechanism design (for computer scientists), by N. Nisan. In N. Nisan, T. Roughgarden, E. Tardos, and V. Vazirani, editors, Algorithmic Game Theory, chapter 9. Cambridge University Press, 2007.
Combinatorial Auctions, by L. Blumrosen and N. Nisan. In N. Nisan, T. Roughgarden, E. Tardos, and V. Vazirani, editors, Algorithmic Game Theory, chapter 11. Cambridge University Press, 2007.
Lecture 2 notes
PDF
Assignment 2 out (due oct-7) PDF
3 Tuesday Oct-7 Auctions: Some theory and Computation Lectures on Optimal Mechanism Design, (p.1-12 only) by J. Hartline.
Auction Theory: A Guide to the Literature, by P. Klemperer in Journal of Economic Surveys 1999, 13 (3), 227-286.
Lecture 3 notes
PDF
Myerson analysis PDF
Assignment 3 out (due oct-14) PDF
4 Tuesday Oct-14 Keyword auctions Online Mechainsms. By David C. Parkes, In Algorithmic Game Theory, edited by N.Nisan, T.Roughgarden, E.Tardos and V.Vazirani, Cambridge University Press (2007).
Internet advertising and the generalized second price auction: Selling billions of dollars worth of keywords. By B. Edelman, M. Ostrovsky, and M. Schwarz. in American Economic Review, 97(1):242-259, March 2007.

GSP analysis PDF
Seminar style: Class dicussion
5 Tuesday Oct-21 Bid Dynamics On Best-Response Bidding in GSP Auctions. By M. Cary, A. Das, B. Edelman, I. Giotis, K. Heimerl, A. Karlin, C. Mathieu and M. Schwarz. HBS Working Paper No. 08-056. 2008.
Dynamics of bid optimization in online advertisement auctions. By C. Borgs, J. Chayes, O. Etesami, N. Immorlica, K. Jain, and M. Mahdian. In Proc. WWW'07.

best-response analysis PDF
Cary et al. PDF
Borgs et al. PDF
Ludek Cigler and Thomas Leaute
6 Tuesday Oct-28 Model refinements A Cascade Model for Externalities in Sponsored Search. By D. Kempe and M. Mahdian, in Proc. Fourth Workshop on Sponsored Search, at ACMEC'08 (Forthcoming in WINE'08).
Sponsored Search Auctions with Markovian Users By G. Aggarwal, J. Feldman, S. Muthukrishnan and M. Pal, in Proc. Fourth Workshop on Sponsored Search, at ACMEC'08.
Aggarwal et al. PDF
Kempe and MahdianPDF
Brammert Ottens and Florent Garcin
7 Tuesday Nov-4 Auction Design (I) General Auction Mechanism for Search Advertising by G. Aggarwal, S. Muthukrishnan, D. Pal and M. Pal. Working paper, Google.
Mechanism Design without Money By James Schummer and Rakesh Vohra in Algorithmic Game Theory, Nisan et al. (eds), Cambridge University Press (2007) 10.3 and 10.4 only
Class notesPDF
Hungarian method PDF
Thomas Hofer and Paul Dutting
8 Tuesday Nov-11 Auction Design (II) Simplified Mechanisms with Applications to Sponsored Search and Package Auctions, by P. Milgrom, Technical Report, Stanford University, October 2007.
Core-Selecting Auctions by B. Day and P. Milgrom, in International Journal of Game Theory, 36, 2008, 393-407.
Day and Milgrom PDF
MilgromPDF
Hajir Roozbehani and Dong Han
9 Tuesday Nov-18 More expressiveness An Expressive Auction Design for Online Display Advertising by S. Lahaie, D. C. Parkes and D. M. Pennock. In Proc. National Conference on Artificial Intelligence (AAAI), 2008.
Expressive Banner Ad Auctions and Model-Based Online Optimization for Clearing by C. Boutilier, D. C. Parkes, T. Sandholm and W. E. Walsh in Proc. of the National Conference on Artificial Intelligence (AAAI), 2008.
Lahaie et al.PDF
Boutilier et al.PDF
Tong Zhang, Li Pu and Alex Susu
10 Tuesday Nov-25 Dynamic VCG Mechanisms The Dynamic Pivot Mechanism by D. Bergemann and J. Valimaki. Working paper, Cowles Foundation (August 2008).
Learning About The Future and Dynamic Efficiency, by A. Gershkov and B. Moldovanu, forthcoming in American Economic Review
Project proposals due
Bergemann and ValimakiPDF
Gershkov and MoldovanuPDF
Hajir Roozbehani and Dong Han
Ludek Cigler and Thomas Leaute
11 Tuesday Dec-2 Dynamic Auctions Self-Correcting Sampling-Based Dynamic Multi-Unit Auctions by F. Constantin and D. C. Parkes, Working paper, Harvard University (2008).
Dynamic Cost-Per-Action Mechanisms and Applications to Online Advertising, by H. Nazerzadeh, A. Saberi, and R. Vohra in Proc. WWW 2008.
Constantin and ParkesPDF
Nazerzadeh et al.PDF
Tong Zhang and Li Pu
Brammert Ottens and Florent Garcin
12 Tuesday Dec-9 Budget constraints Optimal Auctions with Financially Constrained Bidders, by M. Pai and R. Vohra, Working Paper Kellogg School of Management, 2008.
Multi-unit Auctions with budget limits by S. Dobzinski, R. Lavi, and N. Nisan. FOCS 2008.
VohraPDF Paul Dutting and Thomas Hofer
13 Tuesday Dec-16 Student presentations Duetting and HoferPDF
LeautePDF
Garcin and PuPDF
Thursday Jan-8 Final papers due