Theoretical and experimental investigations of the performance of keyword auction mechanisms.

Two keyword auction mechanisms, the Generalized Second-Price auction (GSP) and the Vickrey-Clarke-Groves mechanism (VCG), were compared theoretically and experimentally. The former is widely used in practice; the latter is not, but it has a dominant strategy equilibrium where all participants bid th...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 44; no. 3; pp. 438 - 462
Autores principales: Fukuda, Emiko, Kamijo, Yoshio, Takeuchi, Ai, Masui, Michiharu, Funaki, Yukihiko
Formato: Artículo
Publicado: Wiley-Blackwell Autumn2013
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Theoretical and experimental investigations of the performance of keyword auction mechanisms.
      aug:
        au:
          Fukuda, Emiko
          Kamijo, Yoshio
          Takeuchi, Ai
          Masui, Michiharu
          Funaki, Yukihiko
        affil:
          National Defense Academy of Japan
          Kochi University of Technology
          Ritsumeikan University
          Ishinomaki Senshu University
          Waseda University
      su:
        Economic equilibrium
        Auctions
        Financial performance
        Comparative studies
        Revenue bonds
        Strategic planning
      sug:
        subj:
          Economic equilibrium
          Auctions
          Financial performance
          Comparative studies
          Revenue bonds
          Strategic planning
      ab: Two keyword auction mechanisms, the Generalized Second-Price auction (GSP) and the Vickrey-Clarke-Groves mechanism (VCG), were compared theoretically and experimentally. The former is widely used in practice; the latter is not, but it has a dominant strategy equilibrium where all participants bid their true values. In the theoretical investigation, by applying the 'locally envy-free Nash equilibrium' to the VCG, we found that the allocations are efficient and that upper and lower bounds of the auctioneer's revenue coincide in the two mechanisms. A laboratory experiment, in which the revenues and efficiencies were similar in both mechanisms, supported this result.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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