Beyond the Vickrey Auction

130 Hall, 1st floor, Feldman Building, Edmond Safra Campus
Sunday, May 12, 2019 - 14:00 to 16:00
Paul Milgrom
Stanford University

Abstract:The Vickrey auction suffers seven serious problems - including computability challenges, incompatibility with budget balance, trust requirements, potentially high prices, failure to maintain winner privacy, and others - that disqualified it for use in purchasing television broadcast rights in the United States. The regulator ultimately adopted an alternative proposal, which I will show in this talk overcomes all seven problems while maintaining strategy-proofness and sacrificing little of the efficiency of Vickrey auctions.