General auction mechanism for search advertising
Proceedings of the 18th international conference on World wide web
Bidder Optimal Assignments for General Utilities
WINE '09 Proceedings of the 5th International Workshop on Internet and Network Economics
An expressive mechanism for auctions on the web
Proceedings of the 20th international conference on World wide web
Competitive equilibria in matching markets with budgets
ACM SIGecom Exchanges
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Matching markets play a prominent role in economic theory. A prime example of such a market is the sponsored search market. Here, as in other markets of that kind, market equilibria correspond to feasible, envy free, and bidder optimal outcomes. For settings without budgets such an outcome always exists and can be computed in polynomial-time by the so-called Hungarian Method. Moreover, every mechanism that computes such an outcome is incentive compatible. We show that the Hungarian Method can be modified so that it finds a feasible, envy free, and bidder optimal outcome for settings with budgets. We also show that in settings with budgets no mechanism that computes such an outcome can be incentive compatible for all inputs. For inputs in general position, however, the presented mechanism-as any other mechanism that computes such an outcome for settings with budgets-is incentive compatible.