the.com/auction design
game theory's revenge on greed: build the rules so honesty becomes the smartest move.
means the science of structuring bids, information, and rules so an auction extracts true value and nobody games it.
from emerged from mid-20th-century game theory, especially william vickrey's 1961 work on bidding strategy, then exploded when governments needed to sell something no one had ever priced before: airwaves.
nobel payoffmilgrom and wilson won 2020 nobel for this exact field
vickrey insightsecond-price auctions make truthful bidding the dominant strategy
real stakesbadly designed spectrum auctions have lost governments billions
google's versionad auctions run trillions of times a day, silently
for instance
fcc spectrum auctions — 1994 us auction raised over 600 million dollars in first sale
nasdaq ipo auction — google's 2004 ipo used a modified dutch auction
treasury bond auctions — us government sells debt weekly via sealed-bid format