English

Non-zero-sum Stackelberg Budget Allocation Game for Computational Advertising

Computer Science and Game Theory 2019-06-18 v2 Data Structures and Algorithms

Abstract

Computational advertising has been studied to design efficient marketing strategies that maximize the number of acquired customers. In an increased competitive market, however, a market leader (a leader) requires the acquisition of new customers as well as the retention of her loyal customers because there often exists a competitor (a follower) who tries to attract customers away from the market leader. In this paper, we formalize a new model called the Stackelberg budget allocation game with a bipartite influence model by extending a budget allocation problem over a bipartite graph to a Stackelberg game. To find a strong Stackelberg equilibrium, a standard solution concept of the Stackelberg game, we propose two algorithms: an approximation algorithm with provable guarantees and an efficient heuristic algorithm. In addition, for a special case where customers are disjoint, we propose an exact algorithm based on linear programming. Our experiments using real-world datasets demonstrate that our algorithms outperform a baseline algorithm even when the follower is a powerful competitor.

Keywords

Cite

@article{arxiv.1906.05998,
  title  = {Non-zero-sum Stackelberg Budget Allocation Game for Computational Advertising},
  author = {Daisuke Hatano and Yuko Kuroki and Yasushi Kawase and Hanna Sumita and Naonori Kakimura and Ken-ichi Kawarabayashi},
  journal= {arXiv preprint arXiv:1906.05998},
  year   = {2019}
}

Comments

Accepted for PRICAI2019

R2 v1 2026-06-23T09:53:25.673Z