It is well-known that the ability of the Vickrey-Clarke-Groves (VCG) mechanism to implement efficient outcomes for private value choice problems does not extend to interdependent value problems. When an agent's type affects other agents' utilities, it may not be incentive compatible for him to...

It is well-known that the ability of the Vickrey-Clarke-Groves (VCG) mechanism to implement efficient outcomes for private value choice problems does not extend to interdependent value problems. When an agent's type affects other agents' utilities, it may not be incentive compatible for him to...

Symmetric Nash equilibrium is a well-known refinement of Nash equilibrium in the study of bidding behavior of online advertisers on the sponsored search advertising marketplace. This solution concept, however, has major limitations. It allows for over-bidding and has uncompelling upper bounds....

The generalized second-price (GSP) mechanism is the most widely-used auction format in sponsored search markets. However, figuring out how to bid on GSP auctions presents major theoretical and computational challenges due to the complex nature of the auction format and the infinite number of...

A simplified mechanism is a direct mechanism modified by restricting the set of reports or bids. An example is the auction used to place ads on Internet search pages, in which each advertiser bids a single price to determine the allocation of eight or more ad positions on a page. If a simplified...

Complementary to the axiomatic and mechanism design studies on queueing problems, this paper proposes a strategic bargaining approach to resolve queueing conflicts. Given a situation where players with different waiting costs have to form a queue in order to be served, they firstly compete with...

The advent of online advertising has simultaneously created unprecedented opportunities for advertisers to target consumers and prompted privacy concerns among consumers and regulators. This paper estimates the financial impact of privacy policies on the online display ad industry by applying an...

It is well-known that the ability of the Vickrey-Clarke-Groves (VCG) mechanism to implement efficient outcomes for private value choice problems does not extend to interdependent value problems. When an agent's type affects other agents' utilities, it may not be incentive compatible for him to...

A major effort is taking place in many parts of the world to establish market-oriented institutions, a development that is particularly evident in the context of the transforming economies in Eastern Europe and the republics of the former Soviet Union. Against this background, this paper...

A single unit of a good is to be sold by auction to one of many potential buyers. There are two equally likely states of the world. Potential buyers receive noisy signals of the state of the world. The accuracies of buyers signals may differ. A buyers valuation is the sum of a common value...