TY - JOUR
T1 - The effect of false-name bids in combinatorial auctions
T2 - New fraud in internet auctions
AU - Yokoo, Makoto
AU - Sakurai, Yuko
AU - Matsubara, Shigeo
PY - 2004/1
Y1 - 2004/1
N2 - 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.
AB - 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.
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U2 - 10.1016/S0899-8256(03)00045-9
DO - 10.1016/S0899-8256(03)00045-9
M3 - Article
AN - SCOPUS:0347031344
VL - 46
SP - 174
EP - 188
JO - Games and Economic Behavior
JF - Games and Economic Behavior
SN - 0899-8256
IS - 1
ER -