Diffusion Auction

Diffusion auctions are market mechanisms designed to incentivize the spread of auction information through social networks, aiming to maximize participation and social welfare. Current research focuses on addressing vulnerabilities like Sybil attacks (creation of fake identities) and developing robust mechanisms, such as those incorporating "Sybil taxes" or analyzing the impact of intermediary agents in multi-unit auctions, to ensure fairness and efficiency. These advancements have implications for online marketplaces and other settings where network effects significantly influence market outcomes, improving both seller revenue and buyer participation.