Power of Posted-price Mechanisms for Prophet Inequalities

We study the power of posted pricing mechanisms for Bayesian online optimization problems subject to combinatorial feasibility constraints. When the objective is to maximize social welfare, the problem is widely studied in the literature on prophet inequalities. While most (though not all) existing algorithms for prophet inequalities are implemented using a pricing mechanism, whether or not this can be done in general is unknown, and was formally left as an open question by Dutting, Feldman, Kesselheim, and Lucier (FOCS 2017, SICOMP 2020). Understanding the power and limitations of posted prices is important from a mechanism design perspective because any posted price mechanism is truthful, and is also interesting in its own right as it can guide future research on prophet inequalities.