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We study the problem of auction design for advertising platforms that face strategic advertisers who are bidding across platforms. Each advertiser's goal is to maximize their total value or conversions while satisfying some constraint(s)…

Computer Science and Game Theory · Computer Science 2024-05-07 Gagan Aggarwal , Andres Perlroth , Ariel Schvartzman , Mingfei Zhao

We study reserve price optimization in multi-phase second price auctions, where the seller's prior actions affect the bidders' later valuations through a Markov Decision Process (MDP). Compared to the bandit setting in existing works, the…

Machine Learning · Computer Science 2026-03-04 Rui Ai , Boxiang Lyu , Zhaoran Wang , Zhuoran Yang , Michael I. Jordan

We study the problem of online dynamic pricing with two types of fairness constraints: a "procedural fairness" which requires the proposed prices to be equal in expectation among different groups, and a "substantive fairness" which requires…

Machine Learning · Computer Science 2022-09-27 Jianyu Xu , Dan Qiao , Yu-Xiang Wang

Auto-bidding systems aim to maximize advertiser value over long horizons under budget constraints and ratio targets such as cost-per-acquisition, yet future traffic and auction dynamics are non-stationary and uncertain. Existing approaches…

Artificial Intelligence · Computer Science 2026-05-28 Eunseok Yang , Xingdong Zuo , Kyung-Min Kim

Recent work has addressed the algorithmic problem of allocating advertisement space for keywords in sponsored search auctions so as to maximize revenue, most of which assume that pricing is done via a first-price auction. This does not…

Data Structures and Algorithms · Computer Science 2008-09-12 Yossi Azar , Benjamin Birnbaum , Anna R. Karlin , C. Thach Nguyen

We address the problem of maximizing Gain from Trade (GFT) in repeated buyer-seller exchanges subject to global budget balance constraints. While this problem is well-understood in purely adversarial and stochastic settings, these…

Computer Science and Game Theory · Computer Science 2026-05-12 Anna Lunghi , Matteo Castiglioni , Alberto Marchesi

Setting an effective reserve price for strategic bidders in repeated auctions is a central question in online advertising. In this paper, we investigate how to set an anonymous reserve price in repeated auctions based on historical bids in…

Computer Science and Game Theory · Computer Science 2021-07-13 Zhe Feng , Sébastien Lahaie

Motivated by recent insights into the online bipartite matching problem (\textsc{OBM}), our goal was to extend the optimal algorithm for it, namely \textsc{Ranking}, all the way to the special case of adwords problem, called \textsc{Small},…

Data Structures and Algorithms · Computer Science 2023-07-25 Vijay V. Vazirani

First-price auctions are one of the most popular mechanisms for selling goods and services, with applications ranging from display advertising to timber sales. Unlike their close cousin, the second-price auction, first-price auctions do not…

Computer Science and Game Theory · Computer Science 2025-02-17 Rachitesh Kumar , Omar Mouchtaki

As e-commerce expands, delivering real-time personalized recommendations from vast catalogs poses a critical challenge for retail platforms. Maximizing revenue requires careful consideration of both individual customer characteristics and…

Information Retrieval · Computer Science 2026-02-16 Seong Jin Lee , Will Wei Sun , Yufeng Liu

We study revenue optimization pricing algorithms for repeated posted-price auctions where a seller interacts with a single strategic buyer that holds a fixed private valuation. We show that, in the case when both the seller and the buyer…

Computer Science and Game Theory · Computer Science 2018-05-08 Arsenii Vanunts , Alexey Drutsa

We consider an application of multi-armed bandits to internet advertising (specifically, to dynamic ad allocation in the pay-per-click model, with uncertainty on the click probabilities). We focus on an important practical issue that…

Machine Learning · Computer Science 2013-06-04 Aleksandrs Slivkins

Auto-bidding services optimize real-time bidding strategies for advertisers under key performance indicator (KPI) constraints such as target return on investment and budget. However, uncertainties such as model prediction errors and…

Computer Science and Game Theory · Computer Science 2026-04-08 Linghui Meng , Chun Gan , Shengsheng Niu , Chengcheng Zhang , Chenchen Li , Chuan Yang , Yi Mao , Xin Zhu , Jie He , Zhangang Lin , Ching Law

Most of the work in the auction design literature assumes that bidders behave rationally based on the information available for every individual auction, and the revelation principle enables designers to restrict their efforts to incentive…

Computer Science and Game Theory · Computer Science 2024-05-14 Juncheng Li , Pingzhong Tang

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

Inspired by real-time ad exchanges for online display advertising, we consider the problem of inferring a buyer's value distribution for a good when the buyer is repeatedly interacting with a seller through a posted-price mechanism. We…

Machine Learning · Computer Science 2013-11-28 Kareem Amin , Afshin Rostamizadeh , Umar Syed

Real-time bidding (RTB) has become a major paradigm of display advertising. Each ad impression generated from a user visit is auctioned in real time, where demand-side platform (DSP) automatically provides bid price usually relying on the…

Information Retrieval · Computer Science 2022-12-26 Zhimeng Jiang , Kaixiong Zhou , Mi Zhang , Rui Chen , Xia Hu , Soo-Hyun Choi

Digital advertising platforms operate millisecond-level auctions through Real-Time Bidding (RTB) systems, where advertisers compete for ad impressions through algorithmic bids. This dynamic mechanism enables precise audience targeting but…

Machine Learning · Computer Science 2025-08-11 Pusen Dong , Chenglong Cao , Xinyu Zhou , Jirong You , Linhe Xu , Feifan Xu , Shuo Yuan

Double Auction enables decentralized transfer of goods between multiple buyers and sellers, thus underpinning functioning of many online marketplaces. Buyers and sellers compete in these markets through bidding, but do not often know their…

Machine Learning · Computer Science 2023-07-11 Soumya Basu , Abishek Sankararaman

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