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  3. American Economic Review
  4. May 2014
  5. The VCG Auction in Theory and Practice

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

The VCG Auction in Theory and Practice

  • Hal R. Varian
  • Christopher Harris
American Economic Review
vol. 104, no. 5, May 2014
(pp. 442–45)
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Abstract

We describe two auction forms for search engine advertising and present two simple theoretical results concerning i) the estimation of click-through rates and ii) how to adjust the auctions for broad match search. We also describe some of the practical issues involved in implementing a VCG auction.

Citation

Varian, Hal R., and Christopher Harris. 2014. "The VCG Auction in Theory and Practice." American Economic Review, 104 (5): 442–45. DOI: 10.1257/aer.104.5.442

Additional Materials

JEL Classification

  • D44 Auctions