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.
McLaughlin, K., & Friedman, D. (2016). Online ad auctions: An experiment. ESI Working Paper 16-05. Retrieved from http://digitalcommons.chapman.edu/esi_working_papers/183/