AAAI Publications, Twenty-Seventh AAAI Conference on Artificial Intelligence

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The Cascade Auction — A Mechanism for Deterring Collusion in Auctions
Uriel Feige, Gil Kalai, Moshe Tennenholz

Last modified: 2013-06-30


We introduce a sealed bid auction of a single item in which the winner is chosen at random among the highest k bidders according to a fixed probability distribution, and the price for the chosen winner is the Vickrey-Clarke-Groves price. We call such an auction a cascade auction. Our analysis suggests that this type of auction may give higher revenues compared to second price auction in cases of collusion.

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