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arXiv · 1804.09649

A note on the efficiency of position mechanisms with budget constraints

Alexandros A. Voudouris
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Abstract

We study the social efficiency of several well-known mechanisms for the allocation of a set of available (advertising) positions to a set of competing budget-constrained users (advertisers). Specifically, we focus on the Generalized Second Price auction (GSP), the Vickrey-Clarke-Groves mechanism (VCG) and the Expressive Generalized First Price auction (EGFP). Using the liquid welfare as our efficiency benchmark, we prove a tight bound of 2 on the liquid price of anarchy and stability of these mechanisms for pure Nash equilibria.

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Alexandros A. Voudouris. 2018-04-25. A note on the efficiency of position mechanisms with budget constraints. https://arxiv.org/abs/1804.09649

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