The VCG Auction in Theory and Practice
Hal R. Varian, Christopher Harris
American Economic Review · 2014 · Volume 104 · Issue 5
Abstract
We 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.
Keywords
Auctions
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