Document Type


Publication Date



A human subject laboratory experiment compares the real-time market perfor- mance of the two most popular auction formats for online ad space, Vickrey-Clarke- Groves (VCG) and Generalized Second Price (GSP). Theoretical predictions made in papers by Varian (2007) and Edelman, et al. (2007) seem to organize the data well overall. E ciency under VCG exceeds that under GSP in nearly all treatments. The di erence is economically signi cant in the more competitive parameter con gurations and is statistically signi cant in most treatments. Revenue capture tends to be similar across auction formats in most treatments.


Working Paper 16-05



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.