Cursed yet Satisfied Agents

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" summary

Defines the Wallet Game and shows cursed agents act like rational bidders with a cursed valuation that mixes true and signal-conditioned value, so truthful bidding causes a winner's curse. Characterizes all deterministic Cursed-Exposed IC and IR mechanisms via threshold allocation and a modified payment identity, then adds a true-IR constraint that forces negative initial payments (compensation). Introduces a masking operation that raises thresholds to avoid compensation, proves impossibility for max-value auctions, and gives a half-efficiency guarantee for concave-sum valuations with many independent bidders.

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" chapters (15)

1. 0:00Intro
2. 0:14Wallet Game
3. 2:16The winner's curse (Literature)
4. 4:13Auction Setting (single item)
5. 4:48Direct mechanism
6. 5:48What's wrong?
7. 7:47Behavioral Equivalence
8. 8:59Desirable Properties
9. 12:28C-EPIC-IR mechanisms (Deterministic)+EPIR
10. 15:12Compensation
11. 16:17SW Optimization with Budget Balance
12. 18:41Masking operation
13. 19:43Optimal social welfare
14. 21:32Revenue maximization
15. 21:52Conclusion