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This paper considers the use of a simple posterior sampling algorithm to balance between exploration and exploitation when learning to optimize actions such as in multi-armed bandit problems. The algorithm, also known as Thompson Sampling,…

Machine Learning · Computer Science 2014-02-04 Daniel Russo , Benjamin Van Roy

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

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

I study adversarial attacks against stochastic bandit algorithms. At each round, the learner chooses an arm, and a stochastic reward is generated. The adversary strategically adds corruption to the reward, and the learner is only able to…

Machine Learning · Computer Science 2024-03-18 Shiliang Zuo

Online advertising is a major source of income for many online companies. One common approach is to sell online advertisements via waterfall auctions, through which a publisher makes sequential price offers to ad networks. The publisher…

Artificial Intelligence · Computer Science 2022-04-08 Dan Halbersberg , Matan Halevi , Moshe Salhov

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

This paper examines knapsack auctions as a method to solve the knapsack problem with incomplete information, where object values are private and sizes are public. We analyze three auction types-uniform price (UP), discriminatory price (DP),…

Computer Science and Game Theory · Computer Science 2024-05-02 Peyman Khezr , Vijay Mohan , Lionel Page

Originally motivated by default risk management applications, this paper investigates a novel problem, referred to as the profitable bandit problem here. At each step, an agent chooses a subset of the K possible actions. For each action…

Machine Learning · Statistics 2018-05-09 Mastane Achab , Stephan Clémençon , Aurélien Garivier

Thompson Sampling is one of the most widely used and studied bandit algorithms, known for its simple structure, low regret performance, and solid theoretical guarantees. Yet, in stark contrast to most other families of bandit algorithms,…

Machine Learning · Computer Science 2026-05-28 Yanlin Qu , Hongseok Namkoong , Assaf Zeevi

Bidding optimization is one of the most critical problems in online advertising. Sponsored search (SS) auction, due to the randomness of user query behavior and platform nature, usually adopts keyword-level bidding strategies. In contrast,…

Artificial Intelligence · Computer Science 2018-03-02 Jun Zhao , Guang Qiu , Ziyu Guan , Wei Zhao , Xiaofei He

This paper explores the integration of strategic optimization methods in search advertising, focusing on ad ranking and bidding mechanisms within E-commerce platforms. By employing a combination of reinforcement learning and evolutionary…

Machine Learning · Computer Science 2024-05-30 Chang Zhou , Yang Zhao , Jin Cao , Yi Shen , Xiaoling Cui , Chiyu Cheng

We consider an online ad network problem in which an ad exchange auctions ad slots and intermediaries called demand side platforms (DSPs) buy these ad slots for their clients (advertisers). An intermediary represents multiple advertisers.…

Computer Science and Game Theory · Computer Science 2019-10-07 Rahul Meshram , Kesav Kaza

We analyze the problem of how to optimally bid for ad spaces in online ad auctions. For this we consider the general case of multiple ad campaigns with overlapping targeting criteria. In our analysis we first characterize the structure of…

Optimization and Control · Mathematics 2020-04-16 Erik Tillberg , Peter Marbach , Ravi Mazumdar

We consider incentivized exploration: a version of multi-armed bandits where the choice of arms is controlled by self-interested agents, and the algorithm can only issue recommendations. The algorithm controls the flow of information, and…

Computer Science and Game Theory · Computer Science 2022-06-14 Mark Sellke , Aleksandrs Slivkins

The majority of online marketplaces offer promotion programs to sellers to acquire additional customers for their products. These programs typically allow sellers to allocate advertising budgets to promote their products, with higher…

Computer Science and Game Theory · Computer Science 2025-02-05 Anastasiia Soboleva , Alexander Ledovsky , Yuriy Dorn , Egor Samosvat , Andrey Tikhanov , Fyodor Prazdnikov

Thompson sampling provides a solution to bandit problems in which new observations are allocated to arms with the posterior probability that an arm is optimal. While sometimes easy to implement and asymptotically optimal, Thompson sampling…

Machine Learning · Computer Science 2014-10-16 Dean Eckles , Maurits Kaptein

The multi-armed bandit problem is a popular model for studying exploration/exploitation trade-off in sequential decision problems. Many algorithms are now available for this well-studied problem. One of the earliest algorithms, given by W.…

Machine Learning · Computer Science 2012-04-10 Shipra Agrawal , Navin Goyal

Traditional randomized A/B experiments assign arms with uniform random (UR) probability, such as 50/50 assignment to two versions of a website to discover whether one version engages users more. To more quickly and automatically use data to…

In computational science workflows, it is often the case that 1) objective functions for optimization involve multiple simulation outputs, and 2) those simulations can be performed (at least partially) in parallel. In this work, we…

Optimization and Control · Mathematics 2026-05-28 Matt Menickelly

We consider the multi armed bandit problem in non-stationary environments. Based on the Bayesian method, we propose a variant of Thompson Sampling which can be used in both rested and restless bandit scenarios. Applying discounting to the…

Machine Learning · Statistics 2017-08-01 Vishnu Raj , Sheetal Kalyani