3 ms·

You're describing the generalized second price auction (GSP) which is NOT incentive compatible, which means the optimal strategy isn't to bid truthfully. VCG is

You're describing the generalized second price auction (GSP) which is NOT incentive compatible, which means the optimal strategy isn't to bid truthfully. VCG is.

whymauri 7y ago
You are correct. I wasn't very clear/am very tired. That being said... GSP on one item is VCG, no?
- marcinzm 7y ago
  As I understand it, GSP on a single item is just a standard second price auction which is truthful.
- hdkrgr 7y ago
  That's correct.