Order Auctions with Private Position Preferences | Buobe
Order Auctions with Private Position Preferences
Buobe IA context · why it matters
Why it matters
No strategy profile ex-post implements efficient allocation: Bidders cannot ensure optimal outcomes without knowing others' preferences.
Distribution-free equilibrium welfare guarantee of 1/2 for first-price auctions: This limits the efficiency in current auction formats.
Keep an eye on
The requirement for bidders to communicate more than their bid's binary representation could be a key insight for improving welfare guarantees in future auction designs.
We study auctions where two positions are sold to unit-demand bidders with private heterogeneous order preferences: some are specialists who value only the first position, while others are generalists indifferent between the two.
