Core-selecting package auctions

  title={Core-selecting package auctions},
  author={Robert W. Day and Paul R. Milgrom},
  journal={International Journal of Game Theory},
Auctions that select core allocations with respect to reported values generate competitive levels of sales revenues at equilibrium and limit bidder incentives to use shills. Among core-selecting auctions, the ones that minimize seller revenues also maximize incentives for truthful reporting, produce the Vickrey outcome when that lies in the core and, in contrast to the Vickrey auction, and create no incentive for a seller to exclude qualified bidders. Core-selecting auctions are related to and… 

1 Optimal Incentives in Core-Selecting Auctions 1

Optimal Incentives in Core-Selecting Auctions Robert Day, School of Business, University of Connecticut Paul Milgrom, Dept of Economics, Stanford University August 25, 2010 Auctions that select core

On Bayesian Equilibrium in Minimum-Revenue Core-Selecting Auctions Part 1: Independent Private Values I

We explore Bayesian equilibria in minimum-revenue core-selecting (MRCS) auctions that allow bidders to place arbitrary bids on all packages of goods. In a simple incomplete information setting we nd,

Core-selecting package auctions: a comment on revenue-monotonicity

  • L. Lamy
  • Economics
    Int. J. Game Theory
  • 2010
It is shown that no bidder-optimal Core-selecting auction can satisfy revenue-monotonicity for general preferences when there are at least three goods for sale, while the property holds for any bidder- optimize Core- selecting auction in environments with only two goods or if the characteristic function is submodular.

Core-selecting auctions with incomplete information

It is shown that seller revenues and efficiency from core-selecting auctions can improve as correlations among bidders’ values increase, producing outcomes that are closer to the true core than are the VCG outcomes.

Core-selecting auctions with incomplete information

Core-selecting auctions were proposed as alternatives to the Vickrey–Clarke–Groves (VCG) mechanism for environments with complementarities. In this paper, we consider a simple incomplete-information

Improving Efficiency Using Reserve Prices: An Equilibrium Analysis of Core-Selecting Auctions

This study analyzes the equilibrium of core-selecting auctions under incomplete information. We consider the ascending proxy auction of Ausubel and Milgrom (2002) in a stylized environment with two

Subgame Perfect Equilibrium of Ascending Combinatorial Auctions

This paper considers a class of combinatorial auctions with ascending prices, which includes the Vickrey-Clarke-Groves mechanism and core-selecting auctions. In every ascending auction, the

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This paper studies combinatorial auctions with budget-constrained bidders from a mechanism design perspective. I search for mechanisms that are incentive compatible, individually rational, symmetric,

On minimal ascending auctions with payment discounts

  • L. Lamy
  • Economics
    Games Econ. Behav.
  • 2012

An equilibrium analysis of a core-selecting package auction with reserve prices

This study analyzes the equilibrium of a core-selecting package auction under incomplete information. The ascending proxy auction of Ausubel and Milgrom (Front Theor Econ 1:1–42, 2002) is considered



Ascending Auctions with Package Bidding

Abstract A family of ascending package auction models is introduced in which bidders may determine their own packages on which to bid. In the proxy auction (revelation game) versions, the outcome is

Incentives in Core-Selecting Auctions

A "core-selecting auction mechanism" is a direct mechanism for a multi-item allocation problem that selects a core allocation with respect to the bidders' reported values and the auctioneer's

Fair Payments for Efficient Allocations in Public Sector Combinatorial Auctions

This paper confronts two critical issues facing the bidder-Pareto-optimal core payment, and demonstrates the strength of a mechanism that minimizes total payments among all such auction outcomes, narrowing the previously broad solution concept.

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This paper discusses several complex issues that are encountered in the design of combinatorial auctions, related to the formulation of the winner determination problem, the expression of combined bids, theDesign of progressive combinatorsial auctions that require less information revelation, and the need for decision support tools to help participants make profitable bidding decisions.

Menu Auctions, Resource Allocation, and Economic Influence

In many examples of competitive bidding (e.g., government construction contracting) the relevant object is either partially divisible or ill-defined, in contrast to much of the recent theoretical

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iBundle is introduced, the first iterative combinatorial auction that is optimal for a reasonable agent bidding strategy, in this case myopic best-response bidding, and its optimality is proved with a novel connection to primal-dual optimization theory.

Matching with Contracts

We develop a model of matching with contracts which incorporates, as special cases, the college admissions problem, the Kelso-Crawford labor market matching model, and ascending package auctions. We

Putting Auction Theory to Work

This book provides a comprehensive introduction to modern auction theory and its important new applications and explores the tension between the traditional theory of auctions with a fixed set of bidders and the theory of Auction with endogenous entry, in which bidder profits must be respected to encourage participation.

The effect of false-name bids in combinatorial auctions: new fraud in internet auctions

The Economics of Matching: Stability and Incentives

  • A. Roth
  • Economics
    Math. Oper. Res.
  • 1982
The main focus of this paper is on determining the extent to which matching procedures can be designed which give agents the incentive to honestly reveal their preferences, and which produce stable matches.