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arXiv · 2609.39532

Tight Liquid Welfare Guarantees for Auctions with Budgets via LP Duality

Twan Kroll·Guido Schäfer·Artem Tsikiridis
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Abstract

We study the efficiency of auctions with budget-constrained bidders and derive tight price of anarchy (PoA) bounds for coarse correlated equilibria (CCE). To this end, we develop a general framework that reduces proving PoA guarantees to finding feasible solutions to the dual of a linear program. The LP is formulated over a small number of per-bidder equilibrium statistics, incorporates constraints implied by the auction setting and equilibrium behavior, and captures a novel smoothness notion tailored to budget-constrained environments; we provide a reduction from classical smoothness to this new notion. Our approach enables simple and tight PoA analyses across a broad range of auction formats. Using our framework, we obtain tight liquid welfare guarantees for simultaneous first-price, second-price, and all-pay auctions, simultaneous auctions with restricted uniform bidding interfaces, discriminatory and uniform price multi-unit auctions, and generalized first-price position auctions. Beyond budget-constrained settings, we derive new lower bounds for the budget-free uniform price auction and generalized second-price auction; in particular, our lower bound for the uniform price auction matches the upper bound of $3.146$ by de Keijzer et al. (2013).

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Twan Kroll, Guido Schäfer, Artem Tsikiridis. 2026-09-30. Tight Liquid Welfare Guarantees for Auctions with Budgets via LP Duality. https://arxiv.org/abs/2609.39532

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