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Related papers: Statistical mechanics of budget-constrained auctio…

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We examine trade-offs among stakeholders in ad auctions. Our metrics are the revenue for the utility of the auctioneer, the number of clicks for the utility of the users and the welfare for the utility of the advertisers. We show how to…

Computer Science and Game Theory · Computer Science 2014-04-22 Yoram Bachrach , Sofia Ceppi , Ian A. Kash , Peter Key , David Kurokawa

Randomized mechanisms, which map a set of bids to a probability distribution over outcomes rather than a single outcome, are an important but ill-understood area of computational mechanism design. We investigate the role of randomized…

Computer Science and Game Theory · Computer Science 2009-04-17 Patrick Briest , Shuchi Chawla , Robert Kleinberg , S. Matthew Weinberg

In today's online advertising markets, a crucial requirement for an advertiser is to control her total expenditure within a time horizon under some budget. Among various budget control methods, throttling has emerged as a popular choice,…

Computer Science and Game Theory · Computer Science 2023-12-14 Zhaohua Chen , Chang Wang , Qian Wang , Yuqi Pan , Zhuming Shi , Zheng Cai , Yukun Ren , Zhihua Zhu , Xiaotie Deng

Real-time bidding (RTB) systems, which utilize auctions to allocate user impressions to competing advertisers, continue to enjoy success in digital advertising. Assessing the effectiveness of such advertising remains a challenge in research…

Machine Learning · Computer Science 2024-02-27 Caio Waisman , Harikesh S. Nair , Carlos Carrion

In computational advertising, a challenging problem is how to recommend the bid for advertisers to achieve the best return on investment (ROI) given budget constraint. This paper presents a bid recommendation scenario that discovers the…

Information Retrieval · Computer Science 2022-12-29 Deguang Kong , Konstantin Shmakov , Jian Yang

This talk surveys the recent development of message passing procedures for solving constraint satisfaction problems. The cavity method from statistical physics provides a generalization of the belief propagation strategy that is able to…

Disordered Systems and Neural Networks · Physics 2007-05-23 Marc Mezard

In this survey, we summarize recent developments in research fueled by the growing adoption of automated bidding strategies in online advertising. We explore the challenges and opportunities that have arisen as markets embrace this…

Effective budget allocation is crucial for optimizing the performance of digital advertising campaigns. However, the development of practical budget allocation algorithms remain limited, primarily due to the lack of public datasets and…

Machine Learning · Computer Science 2025-02-06 Briti Gangopadhyay , Zhao Wang , Alberto Silvio Chiappa , Shingo Takamatsu

A typical real-time ad-serving funnel comprises ad targeting, conversion modeling (e.g., click-through rate prediction), budget pacing (bidding), and auction processes. While there is a wealth of research and articles on ad targeting and…

Computer Science and Game Theory · Computer Science 2025-03-11 Yuanlong Chen

Stochastic control problems related to optimal advertising under uncertainty are considered. In particular, we determine the optimal strategies for the problem of maximizing the utility of goodwill at launch time and minimizing the…

Optimization and Control · Mathematics 2007-05-23 Carlo Marinelli

The paper studies the problem of auction design in a setting where the auctioneer accesses the knowledge of the valuation distribution only through statistical samples. A new framework is established that combines the statistical decision…

Econometrics · Economics 2022-02-22 Haitian Xie

We study auctions with severe bounds on the communication allowed: each bidder may only transmit t bits of information to the auctioneer. We consider both welfare- and profit-maximizing auctions under this communication restriction. For…

Computer Science and Game Theory · Computer Science 2011-10-13 L. Blumrosen , N. Nisan , I. Segal

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 study the problem of an online advertising system that wants to optimally spend an advertiser's given budget for a campaign across multiple platforms, without knowing the value for showing an ad to the users on those platforms. We model…

Computer Science and Game Theory · Computer Science 2021-03-26 Vashist Avadhanula , Riccardo Colini-Baldeschi , Stefano Leonardi , Karthik Abinav Sankararaman , Okke Schrijvers

We study the optimal behavior of a bidder in a real-time auction subject to the requirement that a specified collections of heterogeneous items be acquired within given time constraints. The problem facing this bidder is cast as a…

Computational Engineering, Finance, and Science · Computer Science 2021-11-17 Ryan J. Kinnear , Ravi R. Mazumdar , Peter Marbach

We consider the budget optimization problem faced by an advertiser participating in repeated sponsored search auctions, seeking to maximize the number of clicks attained under that budget. We cast the budget optimization problem as a Markov…

Computer Science and Game Theory · Computer Science 2012-10-19 Kareem Amin , Michael Kearns , Peter Key , Anton Schwaighofer

The matching problem has a large variety of applications including the allocation of competitive resources and network controllability. The statistical mechanics approach based on the cavity method has shown to be exact in characterizing…

Disordered Systems and Neural Networks · Physics 2019-08-21 Eleonora Kreačić , Ginestra Bianconi

There is only one technique for prior-free optimal mechanism design that generalizes beyond the structurally benevolent setting of digital goods. This technique uses random sampling to estimate the distribution of agent values and then…

Computer Science and Game Theory · Computer Science 2011-08-25 Bach Q. Ha , Jason D. Hartline

Online auctions are one of the most fundamental facets of the modern economy and power an industry generating hundreds of billions of dollars a year in revenue. Auction theory has historically focused on the question of designing the best…

Computer Science and Game Theory · Computer Science 2021-09-23 Thomas Nedelec , Clément Calauzènes , Noureddine El Karoui , Vianney Perchet

Optimal transportation theory is an area of mathematics with real-world applications in fields ranging from economics to optimal control to machine learning. We propose a new algorithm for solving discrete transport (network flow) problems,…

Optimization and Control · Mathematics 2019-05-03 J. D. Walsh , Luca Dieci