On Revenue Optimal Combinatorial Auctions - IFP Group at the ...

Quantifying Efficiency Loss
For an optimal allocation rule π o , define the efficiency loss ratio
(ELR) as:
ELR(π o , X; A) MSW(X; A) − RSW(πo , X; A)
MSW(X; A)
The Worst Case ELR Problem
maximize ELR(π o , X; A),
X
subject to: K n ≤ K for all n, and (max n xn Kn )/(min n xn 1 ) ≤ r.
Denote the worst case ELR by η(r, K ; A) for r ≥ 1 and K ≥ 1.