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In e-commerce advertising, the ad platform usually relies on auction mechanisms to optimize different performance metrics, such as user experience, advertiser utility, and platform revenue. However, most of the state-of-the-art auction…

Computer Science and Game Theory · Computer Science 2021-01-11 Zhilin Zhang , Xiangyu Liu , Zhenzhe Zheng , Chenrui Zhang , Miao Xu , Junwei Pan , Chuan Yu , Fan Wu , Jian Xu , Kun Gai

The ad-trading desks of media-buying agencies are increasingly relying on complex algorithms for purchasing advertising inventory. In particular, Real-Time Bidding (RTB) algorithms respond to many auctions -- usually Vickrey auctions --…

Optimization and Control · Mathematics 2016-06-20 Joaquin Fernandez-Tapia , Olivier Guéant , Jean-Michel Lasry

In pay-per click sponsored search auctions which are currently extensively used by search engines, the auction for a keyword involves a certain number of advertisers (say k) competing for available slots (say m) to display their ads. This…

Computer Science and Game Theory · Computer Science 2010-01-17 Akash Das Sarma , Sujit Gujar , Y. Narahari

Since 2019, most ad exchanges and sell-side platforms (SSPs), in the online advertising industry, shifted from second to first price auctions. Due to the fundamental difference between these auctions, demand-side platforms (DSPs) have had…

We consider a Bayesian budgeted multi-armed bandit problem, in which each arm consumes a different amount of resources when selected and there is a budget constraint on the total amount of resources that can be used. Budgeted Thompson…

Machine Learning · Computer Science 2024-08-29 Woojin Jeong , Seungki Min

Thompson sampling is an algorithm for online decision problems where actions are taken sequentially in a manner that must balance between exploiting what is known to maximize immediate performance and investing to accumulate new information…

Machine Learning · Computer Science 2020-07-16 Daniel Russo , Benjamin Van Roy , Abbas Kazerouni , Ian Osband , Zheng Wen

E-commerce sites strive to provide users the most timely relevant information in order to reduce shopping frictions and increase customer satisfaction. Multi armed bandit models (MAB) as a type of adaptive optimization algorithms provide…

Information Retrieval · Computer Science 2021-08-23 Ding Xiang , Becky West , Jiaqi Wang , Xiquan Cui , Jinzhou Huang

In Reinforcement Learning (RL), multi-armed Bandit (MAB) problems have found applications across diverse domains such as recommender systems, healthcare, and finance. Traditional MAB algorithms typically assume stationary reward…

Artificial Intelligence · Computer Science 2024-10-10 Gustavo de Freitas Fonseca , Lucas Coelho e Silva , Paulo André Lima de Castro

We consider an outsourcing problem where a software agent procures multiple services from providers with uncertain reliabilities to complete a computational task before a strict deadline. The service consumer requires a procurement strategy…

Computer Science and Game Theory · Computer Science 2021-10-26 Farzaneh Farhadi , Maria Chli , Nicholas R. Jennings

As cellular networks become denser, a scalable and dynamic tuning of wireless base station parameters can only be achieved through automated optimization. Although the contextual bandit framework arises as a natural candidate for such a…

Networking and Internet Architecture · Computer Science 2019-02-07 Igor Colin , Albert Thomas , Moez Draief

The increasing competition in digital advertising induced a proliferation of media agencies playing the role of intermediaries between advertisers and platforms selling ad slots. When a group of competing advertisers is managed by a common…

Computer Science and Game Theory · Computer Science 2022-05-02 Giulia Romano , Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

Thompson Sampling (TS) is one of the most effective algorithms for solving contextual multi-armed bandit problems. In this paper, we propose a new algorithm, called Neural Thompson Sampling, which adapts deep neural networks for both…

Machine Learning · Computer Science 2022-01-03 Weitong Zhang , Dongruo Zhou , Lihong Li , Quanquan Gu

Throttling is a popular method of budget management for online ad auctions in which the platform modulates the participation probability of an advertiser in order to smoothly spend her budget across many auctions. In this work, we…

Computer Science and Game Theory · Computer Science 2023-02-07 Xi Chen , Christian Kroer , Rachitesh Kumar

This paper describes a study of agent bidding strategies, assuming combinatorial valuations for complementary and substitutable goods, in three auction environments: sequential auctions, simultaneous auctions, and the Trading Agent…

Computer Science and Game Theory · Computer Science 2012-07-19 Amy Greenwald , Justin Boyan

While it is relatively easy to start an online advertising campaign, obtaining a high Key Performance Indicator (KPI) can be challenging. A large body of work on this subject has already been performed and platforms known as DSPs are…

Computer Science and Game Theory · Computer Science 2018-08-10 Gianluca Micchi , Saeid Soheily-Khah , Jacob Turner

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

We develop a novel optimization model to maximize the profit of a Demand-Side Platform (DSP) while ensuring that the budget utilization preferences of the DSP's advertiser clients are adequately met. Our model is highly flexible and can be…

Optimization and Control · Mathematics 2018-05-31 Alfonso Lobos , Paul Grigas , Zheng Wen , Kuang-chih Lee

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

We present a data-driven algorithm that advertisers can use to automate their digital ad-campaigns at online publishers. The algorithm enables the advertiser to search across available target audiences and ad-media to find the best possible…

Machine Learning · Computer Science 2022-09-20 Wenjia Ba , J. Michael Harrison , Harikesh S. Nair

We consider the contextual bandit problem, where a player sequentially makes decisions based on past observations to maximize the cumulative reward. Although many algorithms have been proposed for contextual bandit, most of them rely on…

Machine Learning · Computer Science 2021-06-08 Qin Ding , Cho-Jui Hsieh , James Sharpnack