The VCG Auction in Theory and Practice
AbstractWe 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.
CitationVarian, Hal R., and Christopher Harris. 2014. "The VCG Auction in Theory and Practice." American Economic Review, 104 (5): 442-45. DOI: 10.1257/aer.104.5.442
- D44 Auctions