Mediators in position auctions
A mediator is a reliable entity which plays on behalf of the players who give her the right to play. The mediator acts in a pre-specified way based on messages received from the players. However, a mediator cannot enforce behavior; that is, players can play in the game directly without the mediator's help. A mediator generates a new game for the players, the mediated game. The outcome in the original game of an equilibrium in the mediated game is called a mediated equilibrium. Monderer and Tennenholtz introduced a theory of mediators for games with complete information. We extend the theory of mediators to games with incomplete information, and apply the new theory to position auctions, a central topic in electronic commerce. We provide a minimal set of conditions on position auctions, which is sufficient to guarantee that the VCG outcome function is a mediated equilibrium in these auctions.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2007.
"Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords,"
American Economic Review,
American Economic Association, vol. 97(1), pages 242-259, March.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2005. "Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords," NBER Working Papers 11765, National Bureau of Economic Research, Inc.
- FORGES, Françoise, .
"An approach to communication equilibria,"
CORE Discussion Papers RP
721, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- R. Aumann, 2010.
"Subjectivity and Correlation in Randomized Strategies,"
Levine's Working Paper Archive
389, David K. Levine.
- Aumann, Robert J., 1974. "Subjectivity and correlation in randomized strategies," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 67-96, March.
- AUMANN, Robert J., . "Subjectivity and correlation in randomized strategies," CORE Discussion Papers RP 167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Holzman, Ron & Monderer, Dov, 2004. "Characterization of ex post equilibrium in the VCG combinatorial auctions," Games and Economic Behavior, Elsevier, vol. 47(1), pages 87-103, April.
- Graham, Daniel A & Marshall, Robert C, 1987. "Collusive Bidder Behavior at Single-Object Second-Price and English Auctions," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1217-39, December.
- Varian, Hal R., 2007. "Position auctions," International Journal of Industrial Organization, Elsevier, vol. 25(6), pages 1163-1178, December.
- Roger B. Myerson, 1984.
"Multistage Games with Communication,"
590, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dov Monderer & Moshe Tennenholtz, 2004. "K-price auctions: Revenue inequalities, utility equivalence, and competition in auction design," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(2), pages 255-270, August.
- McAfee, R Preston & McMillan, John, 1992.
American Economic Review,
American Economic Association, vol. 82(3), pages 579-99, June.
- Ehud Kalai & Robert W. Rosenthal, 1976. "Arbitration of Two-Party Disputes Under Ignorance," Discussion Papers 215, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Holzman, Ron & Kfir-Dahav, Noa & Monderer, Dov & Tennenholtz, Moshe, 2004. "Bundling equilibrium in combinatorial auctions," Games and Economic Behavior, Elsevier, vol. 47(1), pages 104-123, April.
- Tauman, Yair, 2002. "A note on k-price auctions with complete information," Games and Economic Behavior, Elsevier, vol. 41(1), pages 161-164, October.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, June.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:67:y:2009:i:1:p:2-21. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.