Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148101
Authors: 
McLaughlin, Kevin
Friedman, Daniel
Year of Publication: 
2016
Series/Report no.: 
Working Papers, UC Santa Cruz Economics Department 734
Abstract: 
A human subject laboratory experiment compares the real-time market performance of the two most popular auction formats for online ad space, Vickrey-Clarke-Groves (VCG) and Generalized Second Price (GSP). Theoretical predictions made in papers by Varian (2007) and Edelman, et al. (2007) seem to organize the data well overall. Efficiency under VCG exceeds that under GSP in nearly all treatments. The difference is economically significant in the more competitive parameter configurations and is statistically significant in most treatments. Revenue capture tends to be similar across auction formats in most treatments.
Subjects: 
Laboratory Experiments
Auction
Online Auctions
Advertising
JEL: 
C92
D44
L11
L81
M3
Document Type: 
Working Paper

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