Gomes, Renato; Sweeney, Kane - In: Games and Economic Behavior 86 (2014) C, pp. 421-437
We develop a Bayes–Nash analysis of the generalized second-price (GSP) auction, the multi-unit auction used by search engines to sell sponsored advertising positions. Our main result characterizes the efficient Bayes–Nash equilibrium of the GSP and provides a necessary and sufficient...