New auction mechanism boosts seller revenue and efficiency on social graphs!
Auctions are used to allocate resources, but balancing seller revenue and allocation efficiency is tricky. By applying auctions to social graphs, a new class of mechanisms was discovered that improves both revenue and efficiency. These mechanisms encourage buyers to share auction information, leading to better outcomes than traditional auctions. The information diffusion mechanism, however, had the lowest revenue in this new class. This research could lead to better auction designs for online social and economic networks.