Abstract
We examine the effect of false-name bids on combinatorial auction protocols. False-name bids are bids submitted by a single bidder using multiple identifiers such as multiple e-mail addresses. The obtained results are summarized as follows: (1) the Vickrey-Clarke-Groves (VCG) mechanism, which is strategy-proof and Pareto efficient when there exists no false-name bid, is not false-name-proof; (2) there exists no false-name-proof combinatorial auction protocol that satisfies Pareto efficiency; (3) one sufficient condition where the VCG mechanism is false-name-proof is identified, i.e., the concavity of a surplus function over bidders.
Original language | English |
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Pages (from-to) | 174-188 |
Number of pages | 15 |
Journal | Games and Economic Behavior |
Volume | 46 |
Issue number | 1 |
DOIs | |
Publication status | Published - Jan 2004 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Finance
- Economics and Econometrics