Dütting, Paul, Fischer, Felix and Parkes, David C. (2016) Truthful outcomes from non-truthful position auctions. In: Conitzer, Vincent, Bergemann, Dirk and Yiling, Chen, (eds.) Proceedings of the 17th ACM Conference on Economics and Computation. Association for Computing Machinery, New York, NY, p. 813. ISBN 9781450339360
Full text not available from this repository.Abstract
We exhibit a property of the VCG mechanism that can help explain the surprising rarity with which it is used even in settings with unit demand: a relative lack of robustness to inaccuracies in the choice of its parameters. For a standard position auction environment in which the auctioneer may not know the precise relative values of the positions, we show that under both complete and incomplete information a non-truthful mechanism supports the truthful outcome of the VCG mechanism for a wider range of these values than the VCG mechanism itself. The result for complete information concerns the generalized second-price mechanism and lends additional theoretical support to the use of this mechanism in practice. Particularly interesting from a technical perspective is the case of incomplete information, where a surprising combinatorial equivalence helps us to avoid confrontation with an unwieldy differential equation.
| Item Type: | Book Section |
|---|---|
| Official URL: | https://www.acm.org/publications |
| Additional Information: | © 2016 The Authors |
| Divisions: | Mathematics |
| Subjects: | Q Science > QA Mathematics > QA75 Electronic computers. Computer science |
| Date Deposited: | 16 Nov 2017 10:33 |
| Last Modified: | 15 Sep 2023 10:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/85601 |
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