An image of the abstract from a paper titled Competitive Auctions and Digital Goods is seen on the left. On the right are three profile images, top to bottom are Andrew Goldberg, Jason D. Hartline, and Andrew Wright.
A paper by Andrew Goldberg (top), Jason D. Hartline, and Andrew Wright (bottom) demonstrated that sellers can price items in unlimited supply without knowledge of bidder valuation distribution. Their paper influenced research on mechanism design.

Andrew Goldberg, co-authors, win SIGecom Test of Time Award

The 2001 paper was awarded for “foundational work initiating a long and fruitful line of work in approximately revenue-optimal auction design in prior free settings”.

Andrew Goldberg, senior principal scientist in Amazon’s Middle Mile organization, has been awarded the SIGecom Test of Time Award for “foundational work initiating a long and fruitful line of work in approximately revenue-optimal auction design in prior free settings” for a paper he co-authored in 2001.

EC'21: Competitive auctions and digital goods

SIGecom, or the ACM Special Interest Group on Economics and Computation, issues its test of time award to recognize “the author or authors of an influential paper or series of papers published between ten and twenty-five years ago that has significantly impacted research or applications exemplifying the interplay of economics and computation.”

The paper, “Competitive Auctions and Digital Goods”, studied “a class of single round, sealed bid auctions for items in unlimited supply, such as digital goods. We focus on auctions that are truthful and competitive. Truthful auctions encourage bidders to bid their utility; competitive auctions yield revenue within a constant factor of the revenue for optimal fixed pricing.”

Goldberg and his co-authors, Jason D. Hartline, a computer science professor at Northwestern University, and Andrew Wright, former chief technology officer at N-Dimension Solutions who passed away in 2015, showed that sellers can price items in unlimited supply without the knowledge of bidder valuation distribution. Their paper influenced research on mechanism design, including that for online ad bidding.

“Much of internet advertising involves auctions, these auctions are different from traditional auctions where, for example, you're buying a piece of art,” Goldberg explained.

Those traditional auctions are known as first-price auctions: several people bid simultaneously and the highest bid wins. However, the prices obtained at first-price auctions can be warped by bidders with access to greater resources. For rarer items, like paintings, that is not an issue, but for unlimited online goods such as ad space, sellers want to encourage frequent and competitive bidding.

At the same time, those same sellers also want to maximize revenue by setting the optimal price. However because the bids customers submit in an auction may not align with what they actually believe an item to be worth, sellers run the risk of setting a suboptimal price point.

“Customers have a private valuation, and then they may bid something which is different from their valuation,” Goldberg explained. “If you know the distribution of these values, then you can price goods very well. At the time the paper had been written, economists designed auctions for known distributions of bidder valuations, but online we often don't really know what that distribution is. So we realized we needed something else.”

To address those shortcomings, Goldberg and his colleagues turned to Vickrey auctions. William Vickrey was a Columbia professor and a Nobel Prize winner who devised an auction system known as a sealed-bid second-price auction. In those auctions, bidders submit sealed bids. The highest bidder still wins, but that bidder pays the price set by the second-highest bid. That approach helps incentivize bidders to bid the true value of the item and is known in game theory as a truthful or strategy-proof mechanism. “In truthful mechanism, the bidders’ best strategy is just to reveal their value, they cannot do better,” Goldberg said.

Goldberg and his co-authors also wanted to demonstrate that the auction yields a competitive revenue for the seller. “If you know the bidder distribution, you can get the expected total valuation and calibrate the expected revenue. So you can gauge how good the auction is. But in cases where you can make no assumptions about the distribution, how do you know your auction is good?”

He explained they achieved that by taking random samples of the bids and using those to estimate bidder distribution and then set prices for the remaining bidders. To gauge auction quality, they compared the resulting auction to an optimal omniscient auction. In that scenario, the seller has perfect knowledge of all bids and can, therefore, set a price that maximizes revenue. “We showed that, in the case of digital goods, the random sampling strategy comes within a constant factor of what the optimum omniscient auction can do.”

“Andrew’s innovative algorithm work has helped shape the way we use the internet as a marketplace, from the way vendors around the world advertise products, to how customers view and select products they wish to buy, to how those products are efficiently and quickly delivered to your door step,” said Tim Jacobs, director of Middle Mile Research Science and Optimization at Amazon.

Goldberg noted the idea he and his co-authors proposed sparked interest among those in algorithmic game theory and economics and inspired further research in what was then an emerging area, prior-free mechanism design.

“The point of this test of time of award is you come back later and see that a paper written 20 years ago motivated a fruitful line of follow up research,” Goldberg said. “And it turned out that this idea of distribution-free analysis, auction design, and using random sampling to truthfully learn valuations led to lots of other, deeper results.”

Prior to joining Amazon in 2014 as a senior principal scientist, Goldberg worked for 12 years at Microsoft as a principal researcher. Goldberg earned a master of science in computer science at University of California, Berkley, and a PhD in philosophy at MIT.

Related content

US, WA, Seattle
Prime Video is a first-stop entertainment destination offering customers a vast collection of premium programming in one app available across thousands of devices. Prime members can customize their viewing experience and find their favorite movies, series, documentaries, and live sports – including Amazon MGM Studios-produced series and movies; licensed fan favorites; and programming from Prime Video add-on subscriptions such as Apple TV+, Max, Crunchyroll and MGM+. All customers, regardless of whether they have a Prime membership or not, can rent or buy titles via the Prime Video Store, and can enjoy even more content for free with ads. Are you interested in shaping the future of entertainment? Prime Video's technology teams are creating best-in-class digital video experience. As a Prime Video team member, you’ll have end-to-end ownership of the product, user experience, design, and technology required to deliver state-of-the-art experiences for our customers. You’ll get to work on projects that are fast-paced, challenging, and varied. You’ll also be able to experiment with new possibilities, take risks, and collaborate with remarkable people. We’ll look for you to bring your diverse perspectives, ideas, and skill-sets to make Prime Video even better for our customers. With global opportunities for talented technologists, you can decide where a career Prime Video Tech takes you! Key job responsibilities As an Applied Scientist in the Content Understanding Team, you will lead the end-to-end research and deployment of video and multi-modal models applied to a variety of downstream applications. More specifically, you will: - Work backwards from customer problems to research and design scientific approaches for solving them - Work closely with other scientists, engineers and product managers to expand the depth of our product insights with data, create a variety of experiments to determine the high impact projects to include in planning roadmaps - Stay up-to-date with advancements and the latest modeling techniques in the field - Publish your research findings in top conferences and journals About the team Our Prime Video Content Understanding team builds holistic media representations (e.g. descriptions of scenes, semantic embeddings) and apply them to new customer experiences supply chain problems. Our technology spans the entire Prime Video catalogue globally, and we enable instant recaps, skip intro timing, ad placement, search, and content moderation.
US, WA, Seattle
Prime Video is a first-stop entertainment destination offering customers a vast collection of premium programming in one app available across thousands of devices. Prime members can customize their viewing experience and find their favorite movies, series, documentaries, and live sports – including Amazon MGM Studios-produced series and movies; licensed fan favorites; and programming from Prime Video add-on subscriptions such as Apple TV+, Max, Crunchyroll and MGM+. All customers, regardless of whether they have a Prime membership or not, can rent or buy titles via the Prime Video Store, and can enjoy even more content for free with ads. Are you interested in shaping the future of entertainment? Prime Video's technology teams are creating best-in-class digital video experience. As a Prime Video team member, you’ll have end-to-end ownership of the product, user experience, design, and technology required to deliver state-of-the-art experiences for our customers. You’ll get to work on projects that are fast-paced, challenging, and varied. You’ll also be able to experiment with new possibilities, take risks, and collaborate with remarkable people. We’ll look for you to bring your diverse perspectives, ideas, and skill-sets to make Prime Video even better for our customers. With global opportunities for talented technologists, you can decide where a career Prime Video Tech takes you! Key job responsibilities As an Applied Scientist in the Content Understanding Team, you will lead the end-to-end research and deployment of video and multi-modal models applied to a variety of downstream applications. More specifically, you will: - Work backwards from customer problems to research and design scientific approaches for solving them - Work closely with other scientists, engineers and product managers to expand the depth of our product insights with data, create a variety of experiments to determine the high impact projects to include in planning roadmaps - Stay up-to-date with advancements and the latest modeling techniques in the field - Publish your research findings in top conferences and journals About the team Our Prime Video Content Understanding team builds holistic media representations (e.g. descriptions of scenes, semantic embeddings) and apply them to new customer experiences supply chain problems. Our technology spans the entire Prime Video catalogue globally, and we enable instant recaps, skip intro timing, ad placement, search, and content moderation.
IN, HR, Gurugram
Our customers have immense faith in our ability to deliver packages timely and as expected. A well planned network seamlessly scales to handle millions of package movements a day. It has monitoring mechanisms that detect failures before they even happen (such as predicting network congestion, operations breakdown), and perform proactive corrective actions. When failures do happen, it has inbuilt redundancies to mitigate impact (such as determine other routes or service providers that can handle the extra load), and avoids relying on single points of failure (service provider, node, or arc). Finally, it is cost optimal, so that customers can be passed the benefit from an efficiently set up network. Amazon Shipping is hiring Applied Scientists to help improve our ability to plan and execute package movements. As an Applied Scientist in Amazon Shipping, you will work on multiple challenging machine learning problems spread across a wide spectrum of business problems. You will build ML models to help our transportation cost auditing platforms effectively audit off-manifest (discrepancies between planned and actual shipping cost). You will build models to improve the quality of financial and planning data by accurately predicting ship cost at a package level. Your models will help forecast the packages required to be pick from shipper warehouses to reduce First Mile shipping cost. Using signals from within the transportation network (such as network load, and velocity of movements derived from package scan events) and outside (such as weather signals), you will build models that predict delivery delay for every package. These models will help improve buyer experience by triggering early corrective actions, and generating proactive customer notifications. Your role will require you to demonstrate Think Big and Invent and Simplify, by refining and translating Transportation domain-related business problems into one or more Machine Learning problems. You will use techniques from a wide array of machine learning paradigms, such as supervised, unsupervised, semi-supervised and reinforcement learning. Your model choices will include, but not be limited to, linear/logistic models, tree based models, deep learning models, ensemble models, and Q-learning models. You will use techniques such as LIME and SHAP to make your models interpretable for your customers. You will employ a family of reusable modelling solutions to ensure that your ML solution scales across multiple regions (such as North America, Europe, Asia) and package movement types (such as small parcel movements and truck movements). You will partner with Applied Scientists and Research Scientists from other teams in US and India working on related business domains. Your models are expected to be of production quality, and will be directly used in production services. You will work as part of a diverse data science and engineering team comprising of other Applied Scientists, Software Development Engineers and Business Intelligence Engineers. You will participate in the Amazon ML community by authoring scientific papers and submitting them to Machine Learning conferences. You will mentor Applied Scientists and Software Development Engineers having a strong interest in ML. You will also be called upon to provide ML consultation outside your team for other problem statements. If you are excited by this charter, come join us!
IN, HR, Gurugram
We're on a journey to build something new a green field project! Come join our team and build new discovery and shopping products that connect customers with their vehicle of choice. We're looking for a talented Senior Applied Scientist to join our team of product managers, designers, and engineers to design, and build innovative automotive-shopping experiences for our customers. This is a great opportunity for an experienced engineer to design and implement the technology for a new Amazon business. We are looking for a Applied Scientist to design, implement and deliver end-to-end solutions. We are seeking passionate, hands-on, experienced and seasoned Senior Applied Scientist who will be deep in code and algorithms; who are technically strong in building scalable computer vision machine learning systems across item understanding, pose estimation, class imbalanced classifiers, identification and segmentation.. You will drive ideas to products using paradigms such as deep learning, semi supervised learning and dynamic learning. As a Senior Applied Scientist, you will also help lead and mentor our team of applied scientists and engineers. You will take on complex customer problems, distill customer requirements, and then deliver solutions that either leverage existing academic and industrial research or utilize your own out-of-the-box but pragmatic thinking. In addition to coming up with novel solutions and prototypes, you will directly contribute to implementation while you lead. A successful candidate has excellent technical depth, scientific vision, project management skills, great communication skills, and a drive to achieve results in a unified team environment. You should enjoy the process of solving real-world problems that, quite frankly, haven’t been solved at scale anywhere before. Along the way, we guarantee you’ll get opportunities to be a bold disruptor, prolific innovator, and a reputed problem solver—someone who truly enables AI and robotics to significantly impact the lives of millions of consumers. Key job responsibilities Architect, design, and implement Machine Learning models for vision systems on robotic platforms Optimize, deploy, and support at scale ML models on the edge. Influence the team's strategy and contribute to long-term vision and roadmap. Work with stakeholders across , science, and operations teams to iterate on design and implementation. Maintain high standards by participating in reviews, designing for fault tolerance and operational excellence, and creating mechanisms for continuous improvement. Prototype and test concepts or features, both through simulation and emulators and with live robotic equipment Work directly with customers and partners to test prototypes and incorporate feedback Mentor other engineer team members. A day in the life - 6+ years of building machine learning models for retail application experience - PhD, or Master's degree and 6+ years of applied research experience - Experience programming in Java, C++, Python or related language - Experience with neural deep learning methods and machine learning - Demonstrated expertise in computer vision and machine learning techniques.
US, WA, Seattle
Do you want to re-invent how millions of people consume video content on their TVs, Tablets and Alexa? We are building a free to watch streaming service called Fire TV Channels (https://techcrunch.com/2023/08/21/amazon-launches-fire-tv-channels-app-400-fast-channels/). Our goal is to provide customers with a delightful and personalized experience for consuming content across News, Sports, Cooking, Gaming, Entertainment, Lifestyle and more. You will work closely with engineering and product stakeholders to realize our ambitious product vision. You will get to work with Generative AI and other state of the art technologies to help build personalization and recommendation solutions from the ground up. You will be in the driver's seat to present customers with content they will love. Using Amazon’s large-scale computing resources, you will ask research questions about customer behavior, build state-of-the-art models to generate recommendations and run these models to enhance the customer experience. You will participate in the Amazon ML community and mentor Applied Scientists and Software Engineers with a strong interest in and knowledge of ML. Your work will directly benefit customers and you will measure the impact using scientific tools.
US, MA, Boston
The Artificial General Intelligence (AGI) team is looking for a passionate, talented, and inventive Applied Scientist with a strong deep learning background, to build industry-leading technology with Large Language Models (LLMs) and multi-modal systems. You will support projects that work on technologies including multi-modal model alignment, moderation systems and evaluation. Key job responsibilities As an Applied Scientist with the AGI team, you will support the development of novel algorithms and modeling techniques, to advance the state of the art with LLMs. Your work will directly impact our customers in the form of products and services that make use of speech and language technology. You will leverage Amazon’s heterogeneous data sources and large-scale computing resources to accelerate advances in generative artificial intelligence (GenAI). You are also expected to publish in top tier conferences. About the team The AGI team has a mission to push the envelope in LLMs and multimodal systems. Specifically, we focus on model alignment with an aim to maintain safety while not denting utility, in order to provide the best-possible experience for our customers.
US, MA, Boston
The Artificial General Intelligence (AGI) team is looking for a passionate, talented, and inventive Senior Applied Scientist with a strong deep learning background, to build industry-leading technology with Large Language Models (LLMs) and multimodal systems. Key job responsibilities As a Senior Applied Scientist with the AGI team, you will work with talented peers to lead the development of novel algorithms and modeling techniques, to advance the state of the art with LLMs. Your work will directly impact our customers in the form of products and services that make use of speech and language technology. You will leverage Amazon’s heterogeneous data sources and large-scale computing resources to accelerate advances in generative artificial intelligence (GenAI). About the team The AGI team has a mission to push the envelope in LLMs and multimodal systems, in order to provide the best-possible experience for our customers.
IN, KA, Bangalore
Prime Video is a first-stop entertainment destination offering customers a vast collection of premium programming in one app available across thousands of devices. Prime members can customize their viewing experience and find their favorite movies, series, documentaries, and live sports – including Amazon MGM Studios-produced series and movies; licensed fan favorites; and programming from Prime Video add-on subscriptions such as Apple TV+, Max, Crunchyroll and MGM+. All customers, regardless of whether they have a Prime membership or not, can rent or buy titles via the Prime Video Store, and can enjoy even more content for free with ads. Are you interested in shaping the future of entertainment? Prime Video's technology teams are creating best-in-class digital video experience. As a Prime Video technologist, you’ll have end-to-end ownership of the product, user experience, design, and technology required to deliver state-of-the-art experiences for our customers. You’ll get to work on projects that are fast-paced, challenging, and varied. You’ll also be able to experiment with new possibilities, take risks, and collaborate with remarkable people. We’ll look for you to bring your diverse perspectives, ideas, and skill-sets to make Prime Video even better for our customers. With global opportunities for talented technologists, you can decide where a career Prime Video Tech takes you! Key job responsibilities As a highly experienced and seasoned science leader, you will apply state of the art natural language processing and computer vision research to video centric digital media, while also responsible for creating and maintaining the best environment for applied science in order to recruit, retain and develop top talent. You will lead the research direction for a team of deeply talented applied scientists, creating the roadmaps for forward-looking research and communicate them effectively to senior leadership. You will also hire and develop applied scientists - growing the team to meet the evolving needs of our customers.
IN, KA, Bengaluru
The Amazon Alexa AI team in India is seeking a talented, self-driven Applied Scientist to work on prototyping, optimizing, and deploying ML algorithms within the realm of Generative AI. Key responsibilities include: - Research, experiment and build Proof Of Concepts advancing the state of the art in AI & ML for GenAI. - Collaborate with cross-functional teams to architect and execute technically rigorous AI projects. - Thrive in dynamic environments, adapting quickly to evolving technical requirements and deadlines. - Engage in effective technical communication (written & spoken) with coordination across teams. - Conduct thorough documentation of algorithms, methodologies, and findings for transparency and reproducibility. - Publish research papers in internal and external venues of repute - Support on-call activities for critical issues Basic Qualifications: - Master’s or PhD in computer science, statistics or a related field or relevant science experience (publications/scientific prototypes) in lieu of Masters - Experience in deep learning, machine learning, and data science. - Proficiency in coding and software development, with a strong focus on machine learning frameworks. - Experience in Python, or another language; command line usage; familiarity with Linux and AWS ecosystems. - Understanding of relevant statistical measures such as confidence intervals, significance of error measurements, development and evaluation data sets, etc. - Excellent communication skills (written & spoken) and ability to collaborate effectively in a distributed, cross-functional team setting. Preferred Qualifications: - Track record of diving into data to discover hidden patterns and conducting error/deviation analysis - Ability to develop experimental and analytic plans for data modeling processes, use of strong baselines, ability to accurately determine cause and effect relations - The motivation to achieve results in a fast-paced environment. - Exceptional level of organization and strong attention to detail - Comfortable working in a fast paced, highly collaborative, dynamic work environment - Papers published in AI/ML venues of repute
IN, KA, Bengaluru
The Amazon Alexa AI team in India is seeking a talented, self-driven Applied Scientist to work on prototyping, optimizing, and deploying ML algorithms within the realm of Generative AI. Key responsibilities include: - Research, experiment and build Proof Of Concepts advancing the state of the art in AI & ML for GenAI. - Collaborate with cross-functional teams to architect and execute technically rigorous AI projects. - Thrive in dynamic environments, adapting quickly to evolving technical requirements and deadlines. - Engage in effective technical communication (written & spoken) with coordination across teams. - Conduct thorough documentation of algorithms, methodologies, and findings for transparency and reproducibility. - Publish research papers in internal and external venues of repute - Support on-call activities for critical issues Basic Qualifications: - Master’s or PhD in computer science, statistics or a related field - 2-7 years experience in deep learning, machine learning, and data science. - Proficiency in coding and software development, with a strong focus on machine learning frameworks. - Experience in Python, or another language; command line usage; familiarity with Linux and AWS ecosystems. - Understanding of relevant statistical measures such as confidence intervals, significance of error measurements, development and evaluation data sets, etc. - Excellent communication skills (written & spoken) and ability to collaborate effectively in a distributed, cross-functional team setting. - Papers published in AI/ML venues of repute Preferred Qualifications: - Track record of diving into data to discover hidden patterns and conducting error/deviation analysis - Ability to develop experimental and analytic plans for data modeling processes, use of strong baselines, ability to accurately determine cause and effect relations - The motivation to achieve results in a fast-paced environment. - Exceptional level of organization and strong attention to detail - Comfortable working in a fast paced, highly collaborative, dynamic work environment