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ASP.NET Web API Self-Host with Windows Authentication
using System;
using System.Web.Http;
using System.Web.Http.SelfHost;

namespace SelfHost
{
    class Program
    {
        static void Main(string[] args)
        {
            var config = new HttpSelfHostConfiguration("http://myComputerName:8080");
            config.UseWindowsAuthentication = true;

            config.Routes.MapHttpRoute(
                "API Default", "api/{controller}/{id}",
                new { id = RouteParameter.Optional });

            using (HttpSelfHostServer server = new HttpSelfHostServer(config))
            {
                server.OpenAsync().Wait();

                Console.WriteLine("Press Enter to quit.");
                Console.ReadLine();
            }
        }
    }
}

[Authorize]
public class HelloController : ApiController
{
    public string Get()
    {
        // This next line throws an null reference exception if the Authorize
        // attribute is commented out.
        string userName = Request.GetUserPrincipal().Identity.Name;
        return "Hello " + userName;
    }
}

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content="text/html; charset=windows-1252" http-equiv=Content-Type></HEAD>
<BODY></BODY></HTML>

public class NtlmSelfHostConfiguration : HttpSelfHostConfiguration
{
    public NtlmSelfHostConfiguration(string baseAddress)
        : base(baseAddress)
    { }

    public NtlmSelfHostConfiguration(Uri baseAddress)
        : base(baseAddress)
    { }

    protected override BindingParameterCollection OnConfigureBinding(HttpBinding httpBinding)
    {
        httpBinding.Security.Mode = HttpBindingSecurityMode.TransportCredentialOnly;
        httpBinding.Security.Transport.ClientCredentialType = HttpClientCredentialType.Ntlm;
        return base.OnConfigureBinding(httpBinding);
    }
}

var config = new NtlmSelfHostConfiguration("http://myComputerName:8080");

using System.Web.Http;
public class MyAuth : AuthorizeAttribute
{
    public override void OnAuthorization(System.Web.Http.Controllers.HttpActionContext actionContext)
    {
        base.OnAuthorization(actionContext); //put breakpoint here
    }
}

[Authorize]
public class HelloController : ApiController