Two-Phase Clock Auction Design

Abstract

We propose the two-phase clock auction as a practical means for auctioning many units, a private values clock phase is followed by an interdependent values clock auction phase. The approach combines the simple and transparent price discovery of the private values clock auction with the efficiency of interdependent values clock auction. The private values clock phase is maintained as long as possible to speed up the auction process, and then is taken over to an interdependent values clock auction to improve efficiency and enhance sellers’ revenues.