@article{f3ee869e03154902a069a0ebfa42ece4,
title = "Competitive auctions",
abstract = "We study a class of single-round, sealed-bid auctions for an item in unlimited supply, such as a digital good. We introduce the notion of competitive auctions. A competitive auction is truthful (i.e. encourages bidders to bid their true valuations) and on all inputs yields profit that is within a constant factor of the profit of the optimal single sale price. We justify the use of optimal single price profit as a benchmark for evaluating a competitive auctions profit. We exhibit several randomized competitive auctions and show that there is no symmetric deterministic competitive auction. Our results extend to bounded supply markets, for which we also give competitive auctions.",
author = "Goldberg, {Andrew V.} and Hartline, {Jason D.} and Karlin, {Anna R.} and Michael Saks and Andrew Wright",
note = "Funding Information: ✩ A preliminary version of this paper appeared as [Goldberg, A., Hartline, J., Wright, A., 1999. Competitive auctions and digital goods. Technical report STAR-TR-99.09.01. STAR Laboratory, InterTrust Tech. Corp., Santa Clara, CA; Goldberg, A., Hartline, J., Wright, A., 2001. Competitive auctions and digital goods. In: Proceedings of the 12th Symposium on Discrete Algebra. ACM/SIAM, pp. 735–744]. The new paper contains new results and refines some of the results and concepts introduced in the preliminary version. * Corresponding author. E-mail addresses: goldberg@microsoft.com (A.V. Goldberg), hartline@microsoft.com (J.D. Hartline), karlin@cs.washington.edu (A.R. Karlin), saks@math.rutgers.edu (M. Saks), akwright@acm.org (A. Wright). 1 Part of this work was done while the author was at InterTrust Technologies Corp. 2 This work was done while the author was at University of Washington and InterTrust Technologies Corp. 3 Part of the work done while the author was visiting InterTrust. 4 Supported by NSF grant CCR-9988526. Part of the work was done while visiting Microsoft Research. 5 This work was done while the author was at InterTrust Technologies Corp.",
year = "2006",
month = may,
doi = "10.1016/j.geb.2006.02.003",
language = "English (US)",
volume = "55",
pages = "242--269",
journal = "Games and Economic Behavior",
issn = "0899-8256",
publisher = "Academic Press Inc.",
number = "2",
}