This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. May 2014
  5. The VCG Auction in Theory and Practice

The VCG Auction in Theory and Practice

Download Full Text PDF

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.

Citation

Varian, Hal R., and Christopher Harris. 2014. "The VCG Auction in Theory and Practice." American Economic Review, 104 (5): 442-45. DOI: 10.1257/aer.104.5.442

Additional Materials

JEL Classification

  • D44 Auctions