EE 228 a - Lecture 21 - Spring 2006 Auctions and VCG Allocation
نویسنده
چکیده
In this lecture, we study several types of auctions, and we introduce the Envelope Theorem (E.T.) to analyze the payoffs for the auctions. The expected payoff in each case is found to be the expectation of the second highest valuation. The VickreyClarke-Grove (VCG) allocation mechanism is used in a generalized scenario of the auctions, and it produces a dominant strategy with the resulting Nash Equilibrium also being efficient. Finally, we discuss some applications of auctions to network Quality of Service (QoS) pricing.
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