Multi-unit Auctions with Budget Constraints
نویسندگان
چکیده
Motivated by sponsored search auctions, we study multi-unit auctions with budget constraints. In the mechanism we propose, Sort-Cut, understating budgets or values is weakly dominated. Since Sort-Cuts revenue is increasing in budgets and values, all kinds of equilibrium deviations from true valuations turn out to be bene cial to the auctioneer. We show that the revenue of Sort-Cut can be an order of magnitude greater than that of the natural Market Clearing Price mechanism, and we discuss the e¢ ciency properties of its ex-post Nash equilibrium. Keywords: Multi-Unit Auctions, Budget Constraints, Sponsored Search JEL classi cation: D44
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