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<article-title>Online Auctions for Bidders with Interdependent Values</article-title>
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<author><a href="mailto:florin@eecs.harvard.edu"><name>Florin Constantin</name></a></author>
<aff>HSEAS, Harvard University, 33 Oxford St, Cambridge, MA</aff>

<author><a href="mailto:itota@nitech.ac.jp"><name>Takayuki Ito</name></a></author>
<aff>Nagoya Institute of Technology, Nagoya, 466-8555, Japan</aff>

<author><a href="mailto:parkes@eecs.harvard.edu"><name>David C. Parkes</name></a></author>
<aff>HSEAS, Harvard University, 33 Oxford St, Cambridge, MA</aff>

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<title>ABSTRACT</title>
<p>Interdependent values (IDV) is a valuation model allowing bidders in an auction to express their value for the item(s) to sell as a function of the other bidders' information. We investigate the incentive compatibility (IC) of single-item auctions for IDV bidders in <italic>dynamic environments</italic>. We provide a necessary and sufficient characterization for IC in this setting. We show that if bidders can misreport departure times and private signals, no reasonable auction can be IC. We present a reasonable IC auction for the case where bidders cannot misreport departures.
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