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Monday, March 12, 2018

Monday, March 12, 2018 — 2:30 PM to 3:30 PM EDT

Consider a buyer participating in a repeated auction, such as those prevalent in display advertising. How would she test whether the auction is incentive compatible? To bid effectively, she is interested in whether the auction is single-shot incentive compatible—a pure second-price auction, with fixed reserve price, and also dynamically incentive compatible—her bids are not used to set future reserve prices. In this work we develop tests based on simple bid perturbations that a buyer can use to answer these questions, with a focus on dynamic incentive compatibility.

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