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August 18, 2026
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Core-Selecting Auctions with Incomplete Information

International Journal of Game Theory. 2020. Vol. 49. No. 1. P. 251–273.
Ausubel L., Baranov O.

Core-selecting auctions were proposed as alternatives to the VickreyClarke-Groves (VCG) mechanism for environments with complementarities. In this paper, we consider a simple incomplete-information model that allows correlations among bidders’ values. We perform a full equilibrium analysis of three core-selecting auction formats as applied to the “local-local-global” model. We show that seller revenues and efficiency from core-selecting auctions can improve as correlations among bidders’ values increase, producing outcomes that are closer to the true core than are the VCG outcomes. Thus, there may be a theoretical justification for policymakers to utilize core-selecting auctions rather than the VCG mechanism in certain environments.

Research target: Economics and Management
Language: English
DOI
Text on another site
Keywords: combinatorial auctionsSpectrum auctionsVickrey auctioncore-selecting auctionsVCG mechanism
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