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In markets where algorithmic data processing is increasingly prevalent, recommendation algorithms can substantially affect trade and welfare. We consider a setting in which an algorithm recommends a product based on its value to the buyer…

Theoretical Economics · Economics 2025-06-17 Shota Ichihashi , Alex Smolin

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

Online advertisements are a primary revenue source for e-commerce platforms. Traditional advertising models are store-centric, selecting winning stores through auction mechanisms. Recently, a new approach known as joint advertising has…

Computer Science and Game Theory · Computer Science 2025-07-11 Zhen Zhang , Weian Li , Yuhan Wang , Qi Qi , Kun Huang

Unexpected advertising items in sponsored search may reduce users' reliance on organic search, resulting in hidden cost for the e-commerce platform. To address this problem and promote sustainable growth, we propose a dynamic reserve price…

Computer Science and Game Theory · Computer Science 2025-08-26 Mang Li

Payments in online ad auctions are typically derived from click-through rates, so that advertisers do not pay for ineffective ads. But advertisers often care about more than just clicks. That is, for example, if they aim to raise brand…

Computer Science and Game Theory · Computer Science 2020-01-23 Ioannis Arapakis , Antonio Penta , Hideo Joho , Luis A. Leiva

We study markets where firms compete for consumer attention by subsidizing costly product inspection. These subsidies do not change product quality, but they alter the order in which consumers search by lowering inspection costs. We…

Theoretical Economics · Economics 2026-05-29 Salvador Candelas , Nicole Immorlica , Brendan Lucier

Online advertising in E-commerce platforms provides sellers an opportunity to achieve potential audiences with different target goals. Ad serving systems (like display and search advertising systems) that assign ads to pages should satisfy…

Machine Learning · Computer Science 2019-10-09 Chao Wei , Weiru Zhang , Shengjie Sun , Fei Li , Xiaonan Meng , Yi Hu , Hao Wang

Bidding strategies that help advertisers determine bidding prices are receiving increasing attention as more and more ad impressions are sold through real-time bidding systems. This paper first describes the problem and challenges of…

Computer Science and Game Theory · Computer Science 2022-12-06 Mengjuan Liu , Zhengning Hu , Zhi Lai , Daiwei Zheng , Xuyun Nie

We investigate market forces that would lead to the emergence of new classes of players in the sponsored search market. We report a 3-fold diversification triggered by two inherent features of the sponsored search market, namely, capacity…

Computer Science and Game Theory · Computer Science 2007-11-05 Sudhir Kumar Singh , Vwani P. Roychowdhury , Himawan Gunadhi , Behnam A. Rezaei

Online advertising has been the major monetization approach for Internet companies. Advertisers invest budgets to bid for real-time impressions to gain direct and indirect returns. Existing works have been concentrating on optimizing direct…

Computer Science and Game Theory · Computer Science 2019-03-12 Hao Liu , Yunze Li , Qinyu Cao , Guang Qiu , Jiming Chen

Advertising options have been recently studied as a special type of guaranteed contracts in online advertising, which are an alternative sales mechanism to real-time auctions. An advertising option is a contract which gives its buyer a…

Computer Science and Game Theory · Computer Science 2018-08-29 Bowei Chen , Mohan Kankanhalli

Sponsored search ads appear next to search results when people look for products and services on search engines. In recent years, they have become one of the most lucrative channels for marketing. As the fundamental basis of search ads,…

Information Retrieval · Computer Science 2021-04-27 Chaozhuo Li , Bochen Pang , Yuming Liu , Hao Sun , Zheng Liu , Xing Xie , Tianqi Yang , Yanling Cui , Liangjie Zhang , Qi Zhang

We consider budget constrained combinatorial auctions where bidder $i$ has a private value $v_i$, a budget $b_i$, and is interested in all the items in $S_i$. The value to agent $i$ of a set of items $R$ is $|R \cap S_i| \cdot v_i$. Such…

Computer Science and Game Theory · Computer Science 2010-04-21 Amos Fiat , Stefano Leonardi , Jared Saia , Piotr Sankowski

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

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…

We consider a novel pricing and advertising framework, where a seller not only sets product price but also designs flexible 'advertising schemes' to influence customers' valuation of the product. We impose no structural restriction on the…

Computer Science and Game Theory · Computer Science 2024-12-12 Shipra Agrawal , Yiding Feng , Wei Tang

The majority of online display ads are served through real-time bidding (RTB) --- each ad display impression is auctioned off in real-time when it is just being generated from a user visit. To place an ad automatically and optimally, it is…

Machine Learning · Computer Science 2017-01-13 Han Cai , Kan Ren , Weinan Zhang , Kleanthis Malialis , Jun Wang , Yong Yu , Defeng Guo

In markets for online advertising, some advertisers pay only when users respond to ads. So publishers estimate ad response rates and multiply by advertiser bids to estimate expected revenue for showing ads. Since these estimates may be…

Computer Science and Game Theory · Computer Science 2015-06-08 Ragavendran Gopalakrishnan , Eric Bax , Krishna Prasad Chitrapura , Sachin Garg

Online advertising platforms are thriving due to the customizable audiences they offer advertisers. However, recent studies show that advertisements can be discriminatory with respect to the gender or race of the audience that sees the ad,…

Computer Science and Game Theory · Computer Science 2019-05-23 L. Elisa Celis , Anay Mehrotra , Nisheeth K. Vishnoi

Click prediction is one of the fundamental problems in sponsored search. Most of existing studies took advantage of machine learning approaches to predict ad click for each event of ad view independently. However, as observed in the…

Information Retrieval · Computer Science 2014-07-29 Yuyu Zhang , Hanjun Dai , Chang Xu , Jun Feng , Taifeng Wang , Jiang Bian , Bin Wang , Tie-Yan Liu
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