2 ms·
A Dutch auction is more or less strategically equivalent to a first-price, sealed-bid auction. The advantages of VCG over that would be: - it's easier to impl
by qsort 6y ago
A Dutch auction is more or less strategically equivalent to a first-price, sealed-bid auction.
The advantages of VCG over that would be:
- it's easier to implement. Dutch is admittedly easier to
understand, but with VCG your average buyer would only need to fill a box in a form.
- there is provable dominance of truthful bidding
There are also downsides, admittedly:
- it doesn't maximize seller revenues
- it doesn't work if all bidders collude (unlikely in this scenario)
- a dishonest seller could use shill/fake bids to increase the going price
- philihp 6y agoCall me chaotic neutral, but an auction for a Penny Arcade convention should really be a penny auction.