Motivated by sponsored search auctions with hard budget constraints given by the advertisers, we study multi-unit auctions of a single item. An important example is a sponsored result slot for a keyword, with many units representing its nventory in a month, say. In this single-item multi-unit...

In a setup where a divisible good is to be allocated to a set of bidders with budget constraints, we introduce a mechanism in the spirit of the Vickrey auction. In the mechanism we propose, understating budgets or values is weakly dominated. Since the revenue is increasing in budgets and values,...