Hybrid mechanisms for Vickrey–Clarke–Groves and generalized second-price bids

Patrick Hummel ()
Additional contact information
Patrick Hummel: Google Inc.

International Journal of Game Theory, 2018, vol. 47, issue 1, No 13, 350 pages

Abstract: Abstract This paper analyzes mechanisms for selling advertising opportunities for several different positions on a page that would enable some advertisers to bid using Vickrey–Clarke–Groves (VCG) pricing while other advertisers bid using generalized second-price (GSP) pricing. I focus on a setting in which the number of ads displayed may vary with the advertisers’ bids and showing fewer ads enables the remaining ads to obtain more clicks. I illustrate the types of mechanisms one can construct that would ensure that VCG bidders have an incentive to bid truthfully, GSP bidders cannot obtain the same number of clicks at a lower price by varying their bid, and if all bidders bid using VCG (GSP) pricing, then the outcome is the same as it would be under the VCG (GSP) mechanism.

Keywords: Hybrid mechanisms; Vickrey–Clarke–Groves; Generalized second-price; Position auctions; Online advertising (search for similar items in EconPapers)
JEL-codes: D44 D47 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s00182-017-0591-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jogath:v:47:y:2018:i:1:d:10.1007_s00182-017-0591-9

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/182/PS2

DOI: 10.1007/s00182-017-0591-9

Access Statistics for this article

International Journal of Game Theory is currently edited by Shmuel Zamir, Vijay Krishna and Bernhard von Stengel

More articles in International Journal of Game Theory from Springer, Game Theory Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().