Fair Online Bilateral Trade
François Bachoc, Nicolò Cesa-Bianchi, Tommaso Cesari, Roberto Colomboni
Abstract
In online bilateral trade, a platform posts prices to incoming pairs of buyers and sellers that have private valuations for a certain good. If the price is lower than the buyers' valuation and higher than the sellers' valuation, then a trade takes place. Previous work focused on the platform perspective, with the goal of setting prices maximizing the gain from trade (the sum of sellers' and buyers' utilities). Gain from trade is, however, potentially unfair to traders, as they may receive highly uneven shares of the total utility. In this work we enforce fairness by rewarding the platform with the fair gain from trade, defined as the minimum between sellers' and buyers' utilities. After showing that any no-regret learning algorithm designed to maximize the sum of the utilities may fail badly with fair gain from trade, we present our main contribution: a complete characterization of the regret regimes for fair gain from trade when, after each interaction, the platform only learns whether each trader accepted the current price. Specifically, we prove the following regret bounds: in the deterministic setting, in the stochastic setting, and in the stochastic setting when sellers' and buyers' valuations are independent of each other. We conclude by providing tight regret bounds when, after each interaction, the platform is allowed to observe the true traders' valuations.
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Install the CLIlune papers fulltext b898f3d1-8bed-4d43-ab55-4b69cd8197e1Cited by top-tier papers6
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