Revolutionizing Auctions: Boosting Participation and Optimizing Social Welfare in Networks
A new type of auction called diffusion auction has been developed for social networks. This auction treats the market as a network of potential customers and their relationships. It encourages buyers to not only bid honestly but also invite others to join the auction. Diffusion auctions can attract more participants than traditional auctions, leading to better outcomes like social welfare and seller revenue. These auctions have gained attention in the game theory and market design communities for their potential benefits.