Randomized truthful auctions of digital goods are randomizations over truthful auctions

  • Authors:
  • Aranyak Mehta;Vijay V. Vazirani

  • Affiliations:
  • Georgia Institute of Technology, Atlanta, GA;Georgia Institute of Technology, Atlanta, GA

  • Venue:
  • EC '04 Proceedings of the 5th ACM conference on Electronic commerce
  • Year:
  • 2004

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Abstract

In the digital goods setting we prove that for any randomized auction which is truthful in expectation, there exists an equivalent randomized auction which randomizes over truthful deterministic auctions. By equivalent auctions we mean auctions in which the probability of winning and the expected price offered are the same for all bidders for all bid values. We also prove an approximate equivalence proof in the case where the bids come from a discrete space. Finally, we consider the computational issue of finding an efficient equivalent auction.