Éva Tardos

  1. On the efficiency of equilibria in generalized second price auctions.

    Authors: Brendan Lucier, Ioannis Caragiannis, Christos Kaklamanis, Panagiotis Kanellopoulos, Maria Kyropoulou, Renato Paes Leme, Éva Tardos
    Subjects: Computer Science and Game Theory
    Abstract

    The Generalized Second Price (GSP) auction is the primary auction used for
    monetizing the use of the Internet. It is well-known that truthtelling is not a
    dominant strategy in this auction and that inefficient equilibria can arise. In
    this paper we study the space of equilibria in GSP, and quantify the efficiency
    loss that can arise in equilibria under a wide range of sources of uncertainty,
    as well as in the full information setting. The traditional Bayesian game
    models uncertainty in the valuations (types) of the participants.

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