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Position auctions with multi-unit demands

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  • Yan, Haomin

Abstract

This paper studies the design of position auctions when bidders have multi-unit demands for advertising positions. I propose an ascending clock auction with two stages: allocation stage and assignment stage. The allocation stage determines the quantity of positions assigned to each advertiser using a generalized version of the Ausubel (2004) auction under the context of differentiated items. The assignment stage determines the ranking of advertisements using a generalized version of the generalized English auction under the context of multi-unit demands. I show that this two-stage ascending clock auction dynamically implements the VCG outcome in an ex post perfect equilibrium under pure private values.

Suggested Citation

  • Yan, Haomin, 2021. "Position auctions with multi-unit demands," Games and Economic Behavior, Elsevier, vol. 127(C), pages 179-193.
    • Handle: RePEc:eee:gamebe:v:127:y:2021:i:c:p:179-193
    DOI: 10.1016/j.geb.2021.03.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Position auctions; Multi-unit demands; Ascending clock auctions; VCG;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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