The Clock-Proxy Auction: A Practical Combinatorial Auction Design
AbstractWe propose the clock-proxy auction as a practical means for auctioning many related items. A clock auction phase is followed by a last-and-final proxy round. The approach combines the simple and transparent price discovery of the clock auction with the efficiency of the proxy auction. Linear pricing is maintained as long as possible, but then is abandoned in the proxy round to improve efficiency and enhance seller revenues. The approach has many advantages over the simultaneous ascending auction. In particular, the clock-proxy auction has no exposure problem, eliminates incentives for demand reduction, and prevents most collusive bidding strategies.
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Bibliographic InfoPaper provided by University of Maryland, Department of Economics - Peter Cramton in its series Papers of Peter Cramton with number 04mit5.
Length: 22 pages
Date of creation: 2004
Date of revision: 2004
Publication status: Published in Peter Cramton, Yoav Shoham, and Richard Steinberg, eds., Combinatorial Auctions, Cambridge, MA: MIT Press, chapter 5, 2006.
Contact details of provider:
Postal: Economics Department, University of Maryland, College Park, MD 20742-7211
Phone: (202) 318-0520
Fax: (202) 318-0520
Web page: http://www.cramton.umd.edu
Auctions; Combinatorial Auctions; Market Design; Clock Auctions;
Other versions of this item:
- Lawrence M. Ausubel & Peter Crampton & Paul Milgrom, 2004. "The Clock-Proxy Auction: A Practical Combinatorial Auction Design," Discussion Papers 03-034, Stanford Institute for Economic Policy Research.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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