A New Payment Rule for Core-Selecting Package Auctions
AbstractWe propose a new, easy-to-implement, class of payment rules, "Reference Rules", to make core-selecting package auctions more robust.� Small, almost-riskless, profitable deviations from "truthful bidding" are often easy�for bidders to find under currently-used payment rules.� Reference Rules perform better than existing rules on our marginal-incentive-to-deviate criterion, and are as robust as existing rules to large deviations.� Other considerations, including fairness and comprehensibility, also support the use of Reference Rules.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 2009-W11.
Date of creation: 01 Nov 2009
Date of revision:
Multi-object auction; Core; Combinatorial auction; Package auction; Core-selecting auction; Vickrey auction; Vickrey; Simultaneous ascending auction; Robust design;
Other versions of this item:
- Aytek Erdil & Paul Klemperer, 2010. "A New Payment Rule for Core-Selecting Package Auctions," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 537-547, 04-05.
- Erdil, Aytek & Klemperer, Paul, 2009. "A New Payment Rule for Core-Selecting Package Auctions," CEPR Discussion Papers 7487, C.E.P.R. Discussion Papers.
- Aytek Erdil & Paul Klemperer, 2009. "A New Payment Rule for Core-Selecting Package Auctions," Economics Papers 2009-W11, Economics Group, Nuffield College, University of Oxford.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
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