Spiteful Bidding in the Dollar Auction

Waniek, Marcin; Niescieruk, Agata; Michalak, Tomasz P.; Rahwan, Talal

Spiteful Bidding in the Dollar Auction

Marcin Waniek, Agata Niescieruk, Tomasz P. Michalak, Talal Rahwan

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Proceedings of the Twenty-Fourth International Joint Conference on Artificial Intelligence. Main Track. Pages 667-672.

Abstract

Shubik's (all-pay) dollar auction is a simple yet powerful auction model that aims to shed light on the motives and dynamics of conflict escalation. Common intuition and experimental results suggest that the dollar auction is a trap, inducing conflict by its very design. However, O'Neill proved the surprising fact that, contrary to the experimental results and the intuition, the dollar auction has an immediate solution in pure strategies, i.e., theoretically it should not lead to conflict escalation. In this paper, inspired by the recent literature on spiteful bidders, we ask whether the escalation in the dollar auction can be induced by meanness. Our results confirm this conjecture in various scenarios.

Marcin Waniek, Agata Niescieruk, Tomasz P. Michalak, and Talal Rahwan. 2015. Spiteful Bidding in the Dollar Auction. In Proceedings of the Twenty-Fourth International Joint Conference on Artificial Intelligence, IJCAI-15. IJCAI, 667–672. https://ijcai.org/proceedings/2015/100

@inproceedings{ijcai2015p100,
  title     = {Spiteful Bidding in the Dollar Auction},
  author    = {Waniek, Marcin and Niescieruk, Agata and Michalak, Tomasz P. and Rahwan, Talal},
  booktitle = {Proceedings of the Twenty-Fourth International Joint Conference on
               Artificial Intelligence, {IJCAI-15}},
  publisher = {International Joint Conferences on Artificial Intelligence},
  editor    = {Qiang Yang and Michael Wooldridge},
  pages     = {667--672},
  year      = {2015},
  month     = {7},
  note      = {Main Track},
  url       = {https://ijcai.org/proceedings/2015/100},
}

TY  - CPAPER
TI  - Spiteful Bidding in the Dollar Auction
AU  - Waniek, Marcin
AU  - Niescieruk, Agata
AU  - Michalak, Tomasz P.
AU  - Rahwan, Talal
T2  - Proceedings of the Twenty-Fourth International Joint Conference on Artificial Intelligence, IJCAI-15
PB  - International Joint Conferences on Artificial Intelligence
PY  - 2015
SP  - 667
EP  - 672
UR  - https://ijcai.org/proceedings/2015/100
ER  -