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Related papers: Thinking Twice about Second-Price Ad Auctions

200 papers

Most recent papers addressing the algorithmic problem of allocating advertisement space for keywords in sponsored search auctions assume that pricing is done via a first-price auction, which does not realistically model the Generalized…

Data Structures and Algorithms · Computer Science 2009-08-21 Yossi Azar , Benjamin Birnbaum , Anna R. Karlin , C. Thach Nguyen

In many online advertisement (ad) exchanges, ad slots are each sold via a separate second-price auction. This paper considers the bidder's problem of maximizing the value of ads they purchase in these auctions, subject to budget…

Computer Science and Game Theory · Computer Science 2020-03-16 Jonathan Amar , Nicholas Renegar

After experimentation with other designs, the major search engines converged on the weighted, generalized second-price auction (wGSP) for selling keyword advertisements. Notably, this convergence occurred before position auctions were well…

Computer Science and Game Theory · Computer Science 2014-08-05 David R. M Thompson , Kevin Leyton-Brown

Generalized Second Price (GSP) auctions are widely used by search engines today to sell their ad slots. Most search engines have supported broad match between queries and bid keywords when executing GSP auctions, however, it has been…

Computer Science and Game Theory · Computer Science 2014-04-16 Wei Chen , Di He , Tie-Yan Liu , Tao Qin , Yixin Tao , Liwei Wang

The generalized second price (GSP) auction has served as the core selling mechanism for sponsored search ads for over a decade. However, recent trends expanding the set of allowed ad formats---to include a variety of sizes, decorations, and…

Computer Science and Game Theory · Computer Science 2017-01-24 Ruggiero Cavallo , Prabhakar Krishnamurthy , Maxim Sviridenko , Christopher A. Wilkens

Internet search companies sell advertisement slots based on users' search queries via an auction. While there has been a lot of attention on the auction process and its game-theoretic aspects, our focus is on the advertisers. In particular,…

Data Structures and Algorithms · Computer Science 2007-05-23 Jon Feldman , S. Muthukrishnan , Martin Pal , Cliff Stein

Sponsored search involves running an auction among advertisers who bid in order to have their ad shown next to search results for specific keywords. Currently, the most popular auction for sponsored search is the "Generalized Second Price"…

Computer Science and Game Theory · Computer Science 2008-05-07 Gagan Aggarwal , Jon Feldman , S. Muthukrishnan , Martin Pal

In sponsored search, a number of advertising slots is available on a search results page, and have to be allocated among a set of advertisers competing to display an ad on the page. This gives rise to a bipartite matching market that is…

Computer Science and Game Theory · Computer Science 2008-07-09 Gagan Aggarwal , S. Muthukrishnan , David Pal , Martin Pal

Real-Time Bidding is a new Internet advertising system that has become very popular in recent years. This system works like a global auction where advertisers bid to display their impressions in the publishers' ad slots. The most popular…

Computer Science and Game Theory · Computer Science 2020-10-26 Luis Miralles-Pechuán , Fernando Jiménez , José Manuel García

Modern ad auctions allow advertisers to target more specific segments of the user population. Unfortunately, this is not always in the best interest of the ad platform. In this paper, we examine the following basic question in the context…

Computer Science and Game Theory · Computer Science 2019-07-16 Ashwinkumar Badanidiyuru , Kshipra Bhawalkar , Haifeng Xu

E-commerce platforms usually present an ordered list, mixed with several organic items and an advertisement, in response to each user's page view request. This list, the outcome of ad auction and allocation processes, directly impacts the…

Computer Science and Game Theory · Computer Science 2024-04-12 Xuejian Li , Ze Wang , Bingqi Zhu , Fei He , Yongkang Wang , Xingxing Wang

We present an extensive analysis of the key problem of learning optimal reserve prices for generalized second price auctions. We describe two algorithms for this task: one based on density estimation, and a novel algorithm benefiting from…

Machine Learning · Computer Science 2015-06-10 Mehryar Mohri , Andres Munoz Medina

We perform a simulation-based analysis of keyword auctions modeled as one-shot games of incomplete information to study a series of mechanism design questions. Our first question addresses the degree to which incentive compatibility fails…

Computer Science and Game Theory · Computer Science 2012-05-14 Yevgeniy Vorobeychik

In this work we introduce a new class of mechanisms composed of a traditional Generalized Second Price (GSP) auction and a fair division scheme, in order to achieve some desired level of fairness between groups of Bayesian strategic…

Computer Science and Game Theory · Computer Science 2022-10-19 Georgios Birmpas , Andrea Celli , Riccardo Colini-Baldeschi , Stefano Leonardi

Ad auctions in sponsored search support ``broad match'' that allows an advertiser to target a large number of queries while bidding only on a limited number. While giving more expressiveness to advertisers, this feature makes it challenging…

Computer Science and Game Theory · Computer Science 2009-01-26 Eyal Even-dar , Yishay Mansour , Vahab Mirrokni , S. Muthukrishnan , Uri Nadav

We present an algorithm for constructing an optimal slate of sponsored search advertisements which respects the ordering that is the outcome of a generalized second price auction, but which must also accommodate complicating factors such as…

Discrete Mathematics · Computer Science 2007-06-12 S. Sathiya Keerthi , John A. Tomlin

The Generalized Second Price (GSP) auction is the primary auction used for monetizing the use of the Internet. It is well-known that truthtelling is not a dominant strategy in this auction and that inefficient equilibria can arise. In this…

Computer Science and Game Theory · Computer Science 2014-04-28 Ioannis Caragiannis , Christos Kaklamanis , Panagiotis Kanellopoulos , Maria Kyropoulou , Brendan Lucier , Renato Paes Leme , Éva Tardos

We propose an auction for online advertising where each ad occupies either one square or two horizontally-adjacent squares of a grid of squares. Our primary application are ads for products shown on retail websites such as Instacart or…

Computer Science and Game Theory · Computer Science 2022-07-12 Jonathan Gu , David Pal , Kevin Ryan

Sponsored search positions are typically allocated through real-time auctions, where the outcomes depend on advertisers' quality-adjusted bids - the product of their bids and quality scores. Although quality scoring helps promote ads with…

Computer Science and Game Theory · Computer Science 2025-09-01 Mohammad Rashid , Omid Rafieian , Soheil Ghili

We improve the best known competitive ratio (from 1/4 to 1/2), for the online multi-unit allocation problem, where the objective is to maximize the single-price revenue. Moreover, the competitive ratio of our algorithm tends to 1, as the…

Computer Science and Game Theory · Computer Science 2009-01-13 Sourav Chakraborty , Nikhil Devanur
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