The VCG Auction in Theory and Practice

Hal R. Varian; Christopher Harris

doi:10.1257/aer.104.5.442

American Economic Review Vol. 104 No. 5 2014

The VCG Auction in Theory and Practice

Hal R. Varian¹; Christopher Harris²

¹ Google MTV-1055, 1600 Amphitheatre Parkway, Mountain View, CA 94043 (e-mail: ) · ² Google MTV-900, 1600 Amphitheatre Parkway, Mountain View, CA 94043 (e-mail: )

Abstract

We describe two auction forms for search engine advertising and present two simple theoretical results concerning i) the estimation of click-through rates and ii) how to adjust the auctions for broad match search. We also describe some of the practical issues involved in implementing a VCG auction.

DOI: 10.1257/aer.104.5.442
Volume: 104
Issue: 5
Pages: 442-445
Language: en
Sources: bibtex:phds-export.bib openalex crossref

The VCG Auction in Theory and Practice

Abstract

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