An experimental study of VCG mechanism for multi-unit auctions: competing with machine bidders

This paper complements the main experimental result reported in Takahashi et al. (Evolut Inst Econ Rev 16:357–374, 2019) to a deeper understanding of subjects’ bidding behavior under VCG mechanism. In experiment, there are two types appearance information about bidders’ valuations item given them and bids they asked submit: one is unit themselves (Appearance 1) other multiplied by number units 2). For subjects who compete with truth-telling machine bidders multi-unit auctions, we confirmed that Appearance 1, choose more frequently, efficient allocations observed as compared situation where human bidders. suggests possibility learn their dominant strategy not practicing but experiments for although allocation payment determination mechanism never intuitively understandable subjects.