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Vickrey Auction

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Re: Vickrey Auction

#61

Post by mcphage »

cinntaile wrote: post #55
imtringued wrote: post #47

Earlier quoted context omitted.

People complain about snipers because they only know if they lose the auction at the last minute. This means you have to wait until the auction finishes, before you can bid at another auction. Constantly failing auctions because of some hidden bidder means you are wasting your time. It is only worth bidding in the last 30 minutes.

This is exactly why people need to put their actual max bid (as the parent explained) instead of trying to lowball, then the timing doesn't matter.

> people need to put their actual max bid

People don't necessarily know their actual max bid.

Re: Vickrey Auction

#62

Post by zokier »

shubhamgrg04 wrote: post #6
mtlynch wrote: post #4

Vickrey auctions are really neat! It seems like everyone walks away feeling like they got a good deal. Kevin Lynagh wrote a great blog post about how he convinced a friend to sell a portion of his inventory of small-run of mechanical keyboards via Vickrey auction.[0] The friend normally sold the keyboards for $500, but the winners of the Vickrey auction paid $1,668. They were all willing to pay substantially more, to…

It would be interesting to see if this model can be applied to other enthusiast-driven markets or if it's uniquely suited to markets with high-value, low-volume products."

I think that using uniform price auctions for nvidias troublesome 3080 launch would have been beautiful, same for other things that have issues with scalpers and whatnot

Re: Vickrey Auction

#63

Post by crazygringo »

mcphage wrote: post #61
cinntaile wrote: post #55

Earlier quoted context omitted.

This is exactly why people need to put their actual max bid (as the parent explained) instead of trying to lowball, then the timing doesn't matter.

> people need to put their actual max bid People don't necessarily know their actual max bid.

Yes they do if they stop to think about it. It might take a minute or so of thought, though.

Obviously that max bid can change over time, i.e. if they discover the same item cheaper elsewhere two days later, but at any given point in time people know their actual max bid.

Re: Vickrey Auction

#64

Post by cryptonector »

n1b0m wrote: post #12
jey wrote: post #9

Earlier quoted context omitted.

It implements the welfare-maximizing outcome, defined as the outcome that maximizes the sum of the valuations of all of the bidders for the chosen outcome.

Explain it to me like I’m a 5 year old

In a normal auction you take the highest offer, but stiff competition will cause the final offer to be too high. If we're talking about megarich people buying Rembrandts, who cares. But generally this is a bad thing: we're failing to discover the real value of the thing being auctioned, and we're being wasteful.

For bidding on jobs (e.g., highway construction) one normally takes the lowest bid, but the lowest bidder will not make any profit and might lose money on the deal, thus putting the project at risk. What might happen in those cases is that corruption takes root and the lowest bidder gets paid more money illegally.

In any case, sealed bid, second price bidding solves the problem by removing the incentive to offer the best price and instead offer the real value.

Re: Vickrey Auction

#65

Post by soared »

whimsicalism wrote: post #52
soared wrote: post #48

Earlier quoted context omitted.

I’ve been a buyer for 8 years are so on ttd and another dsp but haven’t heard of the probably of paying out thing - can you share more info on that?

If you are bidding on a pay per click basis, typically your bid will be adjusted to expected revenue based on the probability someone actually clicks on your ad. For CPM ads this probably doesn't apply. This is not for open web exchanges, referring more to stuff like adwords, facebook, etc.

Ah shoot that makes sense I was so confused. I was thinking for programmatic the ssp was reducing a bid based on whether they expected the advertiser to actually pay haha

Re: Vickrey Auction

#66

Post by whimsicalism »

soared wrote: post #65
whimsicalism wrote: post #52

Earlier quoted context omitted.

If you are bidding on a pay per click basis, typically your bid will be adjusted to expected revenue based on the probability someone actually clicks on your ad. For CPM ads this probably doesn't apply. This is not for open web exchanges, referring more to stuff like adwords, facebook, etc.

Ah shoot that makes sense I was so confused. I was thinking for programmatic the ssp was reducing a bid based on whether they expected the advertiser to actually pay haha

i phrased it poorly

Re: Vickrey Auction

#67

Post by 1MachineElf »

mtlynch wrote: post #4

Vickrey auctions are really neat! It seems like everyone walks away feeling like they got a good deal. Kevin Lynagh wrote a great blog post about how he convinced a friend to sell a portion of his inventory of small-run of mechanical keyboards via Vickrey auction.[0] The friend normally sold the keyboards for $500, but the winners of the Vickrey auction paid $1,668. They were all willing to pay substantially more, to…

Makes sense in the context of collectible mechanical keyboards.

FWIW if you Google Brand New Model F Keyboards, they're currently doing a sort-of vickrey auction for some upcoming novel designs.

Re: Vickrey Auction

#68

Post by VHRanger »

whimsicalism wrote: post #41
VHRanger wrote: post #37

Earlier quoted context omitted.

My job is to write algos that optimize the bid on behalf of clients. Most pay per click ad platforms have an API that let you set the bid.

I also work in this field, > Most pay per click ad platforms have an API that let you set the bid. even when you are let to set the bid, usually the auction is not conducted just based on your bid but also adjustments from the probability that you will actually pay out

Right, this is why I said it's not strategy proof.

The bid is just an input you control into an opaque function where the output is some cost and conversions

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