The Balloon Popping Problem Revisited: Lower and Upper Bounds

  • Authors:
  • Hyunwoo Jung;Kyung-Yong Chwa

  • Affiliations:
  • Division of Computer Science, Korea Advanced Institute of Science and Technology, Daejeon, Republic of Korea;Division of Computer Science, Korea Advanced Institute of Science and Technology, Daejeon, Republic of Korea

  • Venue:
  • SAGT '09 Proceedings of the 2nd International Symposium on Algorithmic Game Theory
  • Year:
  • 2009

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Abstract

We consider the balloon popping problem introduced by Immorlica et al. in 2007 [13]. This problem is directly related to the problem of profit maximization in online auctions, where an auctioneer is selling a collection of identical items to anonymous unit-demand bidders. The auctioneer has the full knowledge of bidders' private valuations for the items and tries to maximize his profit. Compared with the profit of fixed price schemes, the competitive ratio of Immorlica et al.'s algorithm was in the range [1.64, 4.33]. In this paper, we narrow the gap to [1.659, 2].