This article is rated Start-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | |||||||||||||||||||||||||||||||
|
I don't think it has much to do with EBay auctions at all, I don't see that it is "similar strategically" to English auctions, and I can't see that shill bids give any advantage at all, since it is a sealed auction! (I suspect that bullet point was added by someone who though vickrey auction = EBay) 213.184.192.82 12:03, 30 March 2007 (UTC)
Isn't eBay's auction model based on a variation of this concept? Whereas the winner pays an amount derived from the second highest bidder? -- Des Courtney 21:41, 8 Mar 2005 (UTC)
I am a bit confused. As far as I know winner's curse comes from overestimating in a common value auction the value of the good. The English and the Vickrey auction are strategically similar and I know that winner's curse will show up in the English auction. Thus I don't see how winner's curse is reduced by a Vickrey auction. -- mkrohn 23:03, 25 May 2005 (UTC)
The above argument may not be correct. In English Auction, the winner still pays (may be a little) more than what is offered by the runners-up. And by definition, that is "Winner's curse". In Vickrey auction, the winner has the satisfaction of knowing that whatever amount he is paying is seconded by at least one other agent. This article may clarify some doubts. Hiranmay ( talk) 16:58, 15 March 2021 (UTC)
Thank you for your fast reply and the correction. In particular it is helpful as I have an exam in about a week and auctions are a (very minor) part of it. So far I have read the chapter in the Varian book, but Wikipedias articles are more interesting :-). Some remarks:
Hope my points make some sense. I would start editing the article on my own, but my time is very limited for the next ten days, thus if anyone finds the above remarks useful I would be happy if he using this to improve the article further :-) -- mkrohn 09:53, 26 May 2005 (UTC)
My own knowledge of auctions is very much slanted toward theory rather than practice. So I have to admit I don't know what the "open-exit" option is. I'm quite sure about my statement that in pure theory the English auction should reduce the winner's curse. Aside from the fact that it makes sense to me, I got it straight out of Krishna's book. However, in practice I agree that that might not be true. The effect you're talking about is called "bidding frenzy". It occurs for a number of reasons, all irrational at some level, and a lot of it is often just desire to win the auction.
I'd say more, but I'm kind of tired and thinking isn't working real well. Isomorphic 03:14, 27 May 2005 (UTC)
Ebay is listed as an example of a high profile users (though similar, not identical). The Wikipedia entry on AdSense states The source of all AdSense income is the AdWords program which in turn has a complex pricing model based on a Vickrey second price auction. Based on? Adding it as an example, possibly expanding on what the differences are and their impacts would seem useful to me. Any reason this is not done? 85.164.107.7 18:14, 2 Jun 2005 (UTC)
The article spells it "Vickrey", but most of the web sources and also an article I have from the Phi Beta Kappa Forum Volume 85, No. 3, P. 4, spells it "Vickery".
Are we certain that the article has it spelled correctly? If not, how do we fix it so that people will find the article and others dependent upon it? (There is a seperate article on William 'Vickrey' that would also have to be fixed if the name is misspelled.) Bill Jefferys 03:27, 4 December 2005 (UTC)
The Nobel Foundation spells it as it is in the Wiki article. This is as authoritative source as I can find easily. Bill Jefferys 03:36, 4 December 2005 (UTC)
Yes, I'm convinced that the Wiki article has it correct. I trust the Nobel foundation. Googling produces somewhat more with the correct spelling; but about 40% get it wrong even so. Bill Jefferys 15:03, 4 December 2005 (UTC)
I did a different search, but forget exactly what I typed in. Both were in the mid to high 10,000s with about a 60:40 break in favor of the correct spelling. Sorry, I cannot resurrect what I did. Bill Jefferys 13:54, 5 December 2005 (UTC)
Ah, here they are: [2] versus [3]. The difference is I failed to use quotes. Bill Jefferys 14:02, 5 December 2005 (UTC)
Vickrey-Clarke-Groves has been merged into Vickrey auction [4] [5]. Now we have one article about two related, but different concepts with similar, but different names. The text is confusing, and it has become that much harder to make meaningful links to only one of these concepts. In addition, categories become a problem where they relate only to one of these concepts. Rl 12:28, 4 September 2006 (UTC)
I think the example given in the text for VCG is a little confusing. Having A,B, and C not ordered by bid-price makes it tricky to follow, and I certainly don't understand how it works by the end. What if there were hundreds of apples? What's the importance of C wanting both apples? Did he get them both and pay different amounts? I'd have thought that C would have won both apples paying 5 and 2 for them. Although what if A were willing to buy two apples? Grj23 ( talk) 07:31, 19 June 2008 (UTC)
"Sealed bid auction" should not redirect here. The last thing we want to do is give people the impression that Vickrey auctions and sealed bid auctions are the same thing. UbiquitousUK 21:17, 28 August 2007.
Should the reference to Milgrom's book be more fleshed out? perhaps a link to it on Amazon or the publisher's website? Or the ISBN? 129.89.32.111 ( talk) 19:22, 20 March 2008 (UTC)
The article seems to suggest a definition "ex post efficient (the winner is the bidder with the highest valuation)". what does the ex post efficiency exactly mean? 72.0.216.52 ( talk) 00:49, 20 June 2010 (UTC)
The article includes a proof that bidding the true value is optimal. However, it does not discuss empirical validation. Do studies show that Vickrey auctions yield higher selling prices than traditional auctions? Wadler ( talk) 09:09, 24 August 2010 (UTC)
Please don't write this:
if you mean this:
A minus sign is not a stubby little hyphen, and proper spacing should be used. See WP:MOSMATH.
Also, notice this difference:
The first is standard and correct. The second is what I found in this article. Wikipedians seem to use \mbox promiscuously in place of various other things that are proper usage. There just isn't any proper way to use \mbox within Wikipedia, because Wikipedia's stripped-down version of TeX never has line-breaks, and the proper use of \mbox is to prevent line-breaks. In some contexts \mbox and \text produce quite different results, and I find lots of people here using \mbox instead of \text (in particular \mbox in subscripts and superscripts gives much larger letters than \text does in those contexts). Michael Hardy ( talk) 01:09, 12 October 2010 (UTC)
Dr. Said has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
Too much of a distinction is being made between the Vickrey auction and the VCG mechanism. The Vickrey auction is much more general than what is presented; indeed, Vickrey's original paper looked at multiple (identical) items in addition to the single unit (i.e., second-price auction) case. In addiiton, the generalized second-price auction is not at all a variant of the Vickrey auction -- it is a variant of a second-price auction.
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
Dr. Said has published scholarly research which seems to be relevant to this Wikipedia article:
ExpertIdeasBot ( talk) 13:26, 7 June 2016 (UTC)
The Ethereum Name Service (ENS) used a Vickrey auction. As of Aug 2017, the ENS controls assets on the order of US$45+ million in assets locked up to hold the web domain names. (167k+ ETH with ETH currently trading for $280+ per ETH). Seems a rather notable use of this sort of auction mechanism. The Future of ENS Incentives, and CodeTract ENS live tracker. What is the Ethereum Name Service? seems a main stream press coverage article. Google shows a number of others. N2e ( talk) 04:47, 20 August 2017 (UTC)
Hello fellow Wikipedians,
I have just modified one external link on Vickrey auction. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.
This message was posted before February 2018.
After February 2018, "External links modified" talk page sections are no longer generated or monitored by InternetArchiveBot. No special action is required regarding these talk page notices, other than
regular verification using the archive tool instructions below. Editors
have permission to delete these "External links modified" talk page sections if they want to de-clutter talk pages, but see the
RfC before doing mass systematic removals. This message is updated dynamically through the template {{
source check}}
(last update: 5 June 2024).
Cheers.— InternetArchiveBot ( Report bug) 05:12, 13 January 2018 (UTC)
Most of the weaknesses listed for both Vickrey auctions and the VCG mechanism in general are factually untrue and largely unsourced. Shilling cannot increase seller profits, nor are there any collusion strategies that benefit buyers. For sellers, shill bids are non-optimal strategy for the same reason that overbidding is a non-optimal strategy for buyers -- the shill bid might win. So far as collusion is concerned, a set of colluding buyers would always do better to only submit a single bid, rather than any other combination of bids. Even the supposed examples of zero price paid by winners are flawed, in that the VCG mechanism is easily modified to take seller costs into account and these function as a reserve price (though this tends to cause budget imbalance in the payments.)
I'd suggest removing all of the listed weaknesses, except for those that can be properly sourced. Wclark ( talk) 16:59, 24 May 2023 (UTC)
This article is rated Start-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | |||||||||||||||||||||||||||||||
|
I don't think it has much to do with EBay auctions at all, I don't see that it is "similar strategically" to English auctions, and I can't see that shill bids give any advantage at all, since it is a sealed auction! (I suspect that bullet point was added by someone who though vickrey auction = EBay) 213.184.192.82 12:03, 30 March 2007 (UTC)
Isn't eBay's auction model based on a variation of this concept? Whereas the winner pays an amount derived from the second highest bidder? -- Des Courtney 21:41, 8 Mar 2005 (UTC)
I am a bit confused. As far as I know winner's curse comes from overestimating in a common value auction the value of the good. The English and the Vickrey auction are strategically similar and I know that winner's curse will show up in the English auction. Thus I don't see how winner's curse is reduced by a Vickrey auction. -- mkrohn 23:03, 25 May 2005 (UTC)
The above argument may not be correct. In English Auction, the winner still pays (may be a little) more than what is offered by the runners-up. And by definition, that is "Winner's curse". In Vickrey auction, the winner has the satisfaction of knowing that whatever amount he is paying is seconded by at least one other agent. This article may clarify some doubts. Hiranmay ( talk) 16:58, 15 March 2021 (UTC)
Thank you for your fast reply and the correction. In particular it is helpful as I have an exam in about a week and auctions are a (very minor) part of it. So far I have read the chapter in the Varian book, but Wikipedias articles are more interesting :-). Some remarks:
Hope my points make some sense. I would start editing the article on my own, but my time is very limited for the next ten days, thus if anyone finds the above remarks useful I would be happy if he using this to improve the article further :-) -- mkrohn 09:53, 26 May 2005 (UTC)
My own knowledge of auctions is very much slanted toward theory rather than practice. So I have to admit I don't know what the "open-exit" option is. I'm quite sure about my statement that in pure theory the English auction should reduce the winner's curse. Aside from the fact that it makes sense to me, I got it straight out of Krishna's book. However, in practice I agree that that might not be true. The effect you're talking about is called "bidding frenzy". It occurs for a number of reasons, all irrational at some level, and a lot of it is often just desire to win the auction.
I'd say more, but I'm kind of tired and thinking isn't working real well. Isomorphic 03:14, 27 May 2005 (UTC)
Ebay is listed as an example of a high profile users (though similar, not identical). The Wikipedia entry on AdSense states The source of all AdSense income is the AdWords program which in turn has a complex pricing model based on a Vickrey second price auction. Based on? Adding it as an example, possibly expanding on what the differences are and their impacts would seem useful to me. Any reason this is not done? 85.164.107.7 18:14, 2 Jun 2005 (UTC)
The article spells it "Vickrey", but most of the web sources and also an article I have from the Phi Beta Kappa Forum Volume 85, No. 3, P. 4, spells it "Vickery".
Are we certain that the article has it spelled correctly? If not, how do we fix it so that people will find the article and others dependent upon it? (There is a seperate article on William 'Vickrey' that would also have to be fixed if the name is misspelled.) Bill Jefferys 03:27, 4 December 2005 (UTC)
The Nobel Foundation spells it as it is in the Wiki article. This is as authoritative source as I can find easily. Bill Jefferys 03:36, 4 December 2005 (UTC)
Yes, I'm convinced that the Wiki article has it correct. I trust the Nobel foundation. Googling produces somewhat more with the correct spelling; but about 40% get it wrong even so. Bill Jefferys 15:03, 4 December 2005 (UTC)
I did a different search, but forget exactly what I typed in. Both were in the mid to high 10,000s with about a 60:40 break in favor of the correct spelling. Sorry, I cannot resurrect what I did. Bill Jefferys 13:54, 5 December 2005 (UTC)
Ah, here they are: [2] versus [3]. The difference is I failed to use quotes. Bill Jefferys 14:02, 5 December 2005 (UTC)
Vickrey-Clarke-Groves has been merged into Vickrey auction [4] [5]. Now we have one article about two related, but different concepts with similar, but different names. The text is confusing, and it has become that much harder to make meaningful links to only one of these concepts. In addition, categories become a problem where they relate only to one of these concepts. Rl 12:28, 4 September 2006 (UTC)
I think the example given in the text for VCG is a little confusing. Having A,B, and C not ordered by bid-price makes it tricky to follow, and I certainly don't understand how it works by the end. What if there were hundreds of apples? What's the importance of C wanting both apples? Did he get them both and pay different amounts? I'd have thought that C would have won both apples paying 5 and 2 for them. Although what if A were willing to buy two apples? Grj23 ( talk) 07:31, 19 June 2008 (UTC)
"Sealed bid auction" should not redirect here. The last thing we want to do is give people the impression that Vickrey auctions and sealed bid auctions are the same thing. UbiquitousUK 21:17, 28 August 2007.
Should the reference to Milgrom's book be more fleshed out? perhaps a link to it on Amazon or the publisher's website? Or the ISBN? 129.89.32.111 ( talk) 19:22, 20 March 2008 (UTC)
The article seems to suggest a definition "ex post efficient (the winner is the bidder with the highest valuation)". what does the ex post efficiency exactly mean? 72.0.216.52 ( talk) 00:49, 20 June 2010 (UTC)
The article includes a proof that bidding the true value is optimal. However, it does not discuss empirical validation. Do studies show that Vickrey auctions yield higher selling prices than traditional auctions? Wadler ( talk) 09:09, 24 August 2010 (UTC)
Please don't write this:
if you mean this:
A minus sign is not a stubby little hyphen, and proper spacing should be used. See WP:MOSMATH.
Also, notice this difference:
The first is standard and correct. The second is what I found in this article. Wikipedians seem to use \mbox promiscuously in place of various other things that are proper usage. There just isn't any proper way to use \mbox within Wikipedia, because Wikipedia's stripped-down version of TeX never has line-breaks, and the proper use of \mbox is to prevent line-breaks. In some contexts \mbox and \text produce quite different results, and I find lots of people here using \mbox instead of \text (in particular \mbox in subscripts and superscripts gives much larger letters than \text does in those contexts). Michael Hardy ( talk) 01:09, 12 October 2010 (UTC)
Dr. Said has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
Too much of a distinction is being made between the Vickrey auction and the VCG mechanism. The Vickrey auction is much more general than what is presented; indeed, Vickrey's original paper looked at multiple (identical) items in addition to the single unit (i.e., second-price auction) case. In addiiton, the generalized second-price auction is not at all a variant of the Vickrey auction -- it is a variant of a second-price auction.
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
Dr. Said has published scholarly research which seems to be relevant to this Wikipedia article:
ExpertIdeasBot ( talk) 13:26, 7 June 2016 (UTC)
The Ethereum Name Service (ENS) used a Vickrey auction. As of Aug 2017, the ENS controls assets on the order of US$45+ million in assets locked up to hold the web domain names. (167k+ ETH with ETH currently trading for $280+ per ETH). Seems a rather notable use of this sort of auction mechanism. The Future of ENS Incentives, and CodeTract ENS live tracker. What is the Ethereum Name Service? seems a main stream press coverage article. Google shows a number of others. N2e ( talk) 04:47, 20 August 2017 (UTC)
Hello fellow Wikipedians,
I have just modified one external link on Vickrey auction. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.
This message was posted before February 2018.
After February 2018, "External links modified" talk page sections are no longer generated or monitored by InternetArchiveBot. No special action is required regarding these talk page notices, other than
regular verification using the archive tool instructions below. Editors
have permission to delete these "External links modified" talk page sections if they want to de-clutter talk pages, but see the
RfC before doing mass systematic removals. This message is updated dynamically through the template {{
source check}}
(last update: 5 June 2024).
Cheers.— InternetArchiveBot ( Report bug) 05:12, 13 January 2018 (UTC)
Most of the weaknesses listed for both Vickrey auctions and the VCG mechanism in general are factually untrue and largely unsourced. Shilling cannot increase seller profits, nor are there any collusion strategies that benefit buyers. For sellers, shill bids are non-optimal strategy for the same reason that overbidding is a non-optimal strategy for buyers -- the shill bid might win. So far as collusion is concerned, a set of colluding buyers would always do better to only submit a single bid, rather than any other combination of bids. Even the supposed examples of zero price paid by winners are flawed, in that the VCG mechanism is easily modified to take seller costs into account and these function as a reserve price (though this tends to cause budget imbalance in the payments.)
I'd suggest removing all of the listed weaknesses, except for those that can be properly sourced. Wclark ( talk) 16:59, 24 May 2023 (UTC)