English

Social Surplus Maximization in Sponsored Search Auctions Requires Communication

Computer Science and Game Theory 2023-05-16 v1 Information Theory Theoretical Economics math.IT

Abstract

We show that computing the optimal social surplus requires Ω(mn)\Omega(mn) bits of communication between the website and the bidders in a sponsored search auction with nn slots on the website and with tick size of 2m2^{-m} in the discrete model, even when bidders are allowed to freely communicate with each other.

Keywords

Cite

@article{arxiv.2305.07729,
  title  = {Social Surplus Maximization in Sponsored Search Auctions Requires Communication},
  author = {Suat Evren},
  journal= {arXiv preprint arXiv:2305.07729},
  year   = {2023}
}

Comments

11 pages