Bilateral Trade: A Regret Minimization Perspective

Gio, 17/03/2022 - 10:00 / 11:00

406AB, Viale Romania

Speaker: Tommaso Cesari , Toulouse School of Economics

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. I will 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. I will present 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.