Optimal Mechanism

Optimal mechanism design seeks to create auction or allocation systems that achieve specific goals, such as maximizing revenue or social welfare, while incentivizing truthful behavior from participants. Current research focuses on developing mechanisms robust to uncertainty in bidder valuations, using techniques like conformal prediction and distributionally robust optimization, as well as employing machine learning models, including neural networks and transformers, to approximate optimal solutions in complex settings with multiple goods and bidders. These advancements have implications for various applications, from online advertising and financial markets to resource allocation and public project funding, by improving efficiency and fairness.