Optimizing Bidding Strategies in First-Price Auctions in Binary Feedback Setting with Predictions

Jason Tandiary
6/18/2025
cs.LG

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Abstract

This paper studies Vickrey first-price auctions under binary feedback. Leveraging the enhanced performance of machine learning algorithms, the new algorithm uses past information to improve the regret bounds of the BROAD-OMD algorithm. Motivated by the growing relevance of first-price auctions and the predictive capabilities of machine learning models, this paper proposes a new algorithm within the BROAD-OMD framework (Hu et al., 2025) that leverages predictions of the highest competing bid. This paper's main contribution is an algorithm that achieves zero regret under accurate predictions. Additionally, a bounded regret bound of O(T^(3/4) * Vt^(1/4)) is established under certain normality conditions.

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@article{tandiary2025optimizing,
  title  = {Optimizing Bidding Strategies in First-Price Auctions in Binary Feedback Setting with Predictions},
  author = {Jason Tandiary},
  year   = {2025},
  eprint = {2506.15817},
  archivePrefix = {arXiv},
  url    = {http://arxiv.org/abs/2506.15817v2}
}

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