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Auctions are good example of a domain where game theory (and reverse game theory or mechanism design) often makes useful predictions and has practical influence. Google and Facebook use mechanisms that approximate the VCG allocation rule for some of their ad content and know that they should not be able to find massive improvements on this due to theory. I agree that it is often less predictive and more like stories.



Is this documented? I'd be curious to see some studies on it, if you know of any.





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