Tight Inapproximability for Welfare-Maximizing Autobidding Equilibria
Abstract
We examine the complexity of computing welfare- and revenue-maximizing equilibria in autobidding second-price auctions subject to return-on-spend (RoS) constraints. We show that computing an autobidding equilibrium that approximates the welfare-optimal one within a factor of $2 - ε$ is NP-hard for any constant $ε> 0$. Moreover, deciding whether there exists an autobidding equilibrium that attains a $1/2 + ε$ fraction of the optimal welfare -- unfettered by equilibrium constraints -- is NP-hard for any constant $ε> 0$. This hardness result is tight in view of the fact that the price of anarchy (PoA) is at most $2$, and shows that deciding whether a non-trivial autobidding equilibrium exists -- one that is even marginally better than the worst-case guarantee -- is intractable. For revenue, we establish a stronger logarithmic inapproximability, while under the projection games conjecture, our reduction rules out even a polynomial approximation factor. These results significantly strengthen the APX-hardness of Li and Tang (AAAI '24). Furthermore, we refine our reduction in the presence of ML advice concerning the buyers' valuations, revealing again a close connection between the inapproximability threshold and PoA bounds. Finally, we examine relaxed notions of equilibrium attained by simple learning algorithms, establishing constant inapproximability for both revenue and welfare.
Fields of Study & Subjects
Auction Theory and Applications
Game Theory and Voting Systems
Game Theory and Applications
Publication details
- Journal / source
- arXiv (Cornell University)
- Publication date
- 9 February 2026
- Language
- EN
- Document type
- Preprint