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by lpage
1592 days ago
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VCGs got a real-world test in FB's ad market [1], and the results were mixed. VCG is in a class of theoretically interesting but fragile and overly game-theoretic mechanisms. Our mechanism is boring from a mechanism design standpoint—it's a uniform clearing price periodic auction without any cleaver demand reduction or tricks aimed at incentive compatibility. The complexity of what we allow for with the bidding language makes closed-form/theoretical analysis at best difficult and, in cases, impossible. Instead, we focus on giving traders a direct means to express their valuations and mechanism that minimizes information leakage and post-trade regret (situations where a bidder wishes they'd behaved differently given the auction's outcome). [1] https://www.researchgate.net/profile/Alexander-Leo-Hansen/pu... |
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