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We consider a multi-round auction setting motivated by pay-per-click auctions for Internet advertising. In each round the auctioneer selects an advertiser and shows her ad, which is then either clicked or not. An advertiser derives value…

Data Structures and Algorithms · Computer Science 2013-06-05 Moshe Babaioff , Yogeshwer Sharma , Aleksandrs Slivkins

Online advertising aims to increase user engagement and maximize revenue, but users respond heterogeneously to ad exposure. Some users purchase only when exposed to ads, while others purchase regardless of exposure, and still others never…

Methodology · Statistics 2025-11-26 Shanshan Luo , Peng Wu , Zhi Geng

Ad exchanges are an emerging platform for trading advertisement slots on the web with billions of dollars revenue per year. Every time a user visits a web page, the publisher of that web page can ask an ad exchange to auction off the ad…

Computer Science and Game Theory · Computer Science 2016-04-20 Oren Ben-Zwi , Monika Henzinger , Veronika Loitzenbauer

Online auctions play a central role in online advertising, and are one of the main reasons for the industry's scalability and growth. With great changes in how auctions are being organized, such as changing the second- to first-price…

Computer Science and Game Theory · Computer Science 2020-09-04 Djordje Gligorijevic , Tian Zhou , Bharatbhushan Shetty , Brendan Kitts , Shengjun Pan , Junwei Pan , Aaron Flores

The effectiveness of advertising in e-commerce largely depends on the ability of merchants to bid on and win impressions for their targeted users. The bidding procedure is highly complex due to various factors such as market competition,…

Information Retrieval · Computer Science 2023-12-29 Artem Betlei , Mariia Vladimirova , Mehdi Sebbar , Nicolas Urien , Thibaud Rahier , Benjamin Heymann

As data marketplaces become increasingly central to the digital economy, it is crucial to design efficient pricing mechanisms that optimize revenue while ensuring fair and adaptive pricing. We introduce the Maximum Auction-to-Posted Price…

Machine Learning · Statistics 2026-04-06 Yingqi Gao , Wenlu Xu , Jin J. Zhou , Hua Zhou , Yong Chen , Xiaowu Dai

It is widely accepted from transformer research that "attention is all we need", but the amount of attention required has never been systematically quantified. Is quadratic $O(L^2)$ attention necessary, or is there a sub-quadratic attention…

Machine Learning · Computer Science 2026-01-28 Yufeng Huang

In this study, we apply reinforcement learning techniques and propose what we call reinforcement mechanism design to tackle the dynamic pricing problem in sponsored search auctions. In contrast to previous game-theoretical approaches that…

Computer Science and Game Theory · Computer Science 2017-11-29 Weiran Shen , Binghui Peng , Hanpeng Liu , Michael Zhang , Ruohan Qian , Yan Hong , Zhi Guo , Zongyao Ding , Pengjun Lu , Pingzhong Tang

Auctions are key for maximizing sellers' revenue and ensuring truthful bidding among buyers. Recently, an approach known as differentiable economics based on machine learning (ML) has shown promise in learning powerful auction mechanisms…

Computer Science and Game Theory · Computer Science 2025-10-02 Roy Maor Lotan , Inbal Talgam-Cohen , Yaniv Romano

We consider auction environments in which at the time of the auction bidders observe signals about their ex-post value. We introduce a model of novice bidders who do not know know the joint distribution of signals and instead build a…

Theoretical Economics · Economics 2021-07-02 Philippe Jehiel , Konrad Mierendorff

For decades, Simultaneous Ascending Auction (SAA) has been the most popular mechanism used for spectrum auctions. It has recently been employed by many countries for the allocation of 5G licences. Although SAA presents relatively simple…

Computer Science and Game Theory · Computer Science 2024-03-13 Alexandre Pacaud , Aurelien Bechler , Marceau Coupechoux

Sponsored search auctions are commonly modeled as an assignment of a fixed set of slots (positions) to a set of advertisers, with welfare maximization being reducible to a standard matching problem. Motivated by modern ad formats, we study…

Computer Science and Game Theory · Computer Science 2026-05-13 Eleni Batziou , Georgios Birmpas , Georgios Chionas , Piotr Krysta

We consider dynamic pricing schemes in online settings where selfish agents generate online events. Previous work on online mechanisms has dealt almost entirely with the goal of maximizing social welfare or revenue in an auction settings.…

Computer Science and Game Theory · Computer Science 2015-04-07 Ilan Reuven Cohen , Alon Eden , Amos Fiat , Łukasz Jeż

This paper shows a vulnerability of the pay-per-click accounting of Google Ads and proposes a statistical tradeoff-based approach to manage this vulnerability. The result of this paper is a model to calculate the overhead cost per click…

Networking and Internet Architecture · Computer Science 2018-02-08 Nicola Zingirian , Michele Benini

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

The design of the best economic mechanism for Sponsored Search Auctions (SSAs) is a central task in computational mechanism design/game theory. Two open questions concern the adoption of user models more accurate than that one currently…

Computer Science and Game Theory · Computer Science 2015-11-24 Gabriele Farina , Nicola Gatti

As the number of resources on chip multiprocessors (CMPs) increases, the complexity of how to best allocate these resources increases drastically. Because the higher number of applications makes the interaction and impacts of various memory…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-07-20 Farshid Farhat , Diman Zad Tootaghaj

We present novel online mechanisms for traffic intersection auctions in which users bid for priority service. We assume that users at the front of their lane are requested to declare their delay cost, i.e. value of time, and that users are…

Computer Science and Game Theory · Computer Science 2020-10-15 David Rey , Michael W Levin , Vinayak V Dixit

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

In the Bidder Selection Problem (BSP) there is a large pool of $n$ potential advertisers competing for ad slots on the user's web page. Due to strict computational restrictions, the advertising platform can run a proper auction only for a…

Computer Science and Game Theory · Computer Science 2024-04-30 Nickolai Gravin , Yixuan Even Xu , Renfei Zhou