Optimal Multi-Dimensional Auctions: Conjectures and Simulations

TL;DR

This paper investigates the properties of optimal multi-dimensional auctions with multiple qualities, testing hypotheses through simulations and providing an open-source Python library for such auction models.

Contribution

It introduces the first open-source Python library for multi-dimensional auction simulations and empirically tests conjectured properties of optimal auctions.

Findings

Validated several conjectures about auction properties

Developed a new simulation tool for multi-dimensional auctions

Enhanced understanding of auction design in multi-quality settings

Abstract

We explore the properties of optimal multi-dimensional auctions in a model where a single object of multiple qualities is sold to several buyers. Using simulations, we test some hypotheses conjectured by Belloni et al. [3] and Kushnir and Shourideh [7]. As part of this work, we provide the first open-source library for multi-dimensional auction simulations written in Python.