Characterizing effective auction mechanisms: Insights from the 2007 TAC market design competition

Abstract

This paper analyzes the entrants to the 2007 TAC Market Design competition. It presents a classification of the entries to the competition, and uses this classification to compare these entries. The paper also attempts to relate market dynamics to the auction rules adopted by these entries and their adaptive strategies via a set of post-tournament experiments. Based on this analysis, the paper speculates about the design of effective auction mechanisms, both in the setting of this competition and in the more general case