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In cost-per-click (CPC) or cost-per-impression (CPM) advertising campaigns, advertisers always run the risk of spending the budget without getting enough conversions. Moreover, the bidding on advertising inventory has few connections with…

Information Retrieval · Computer Science 2022-12-29 Deguang Kong , Konstantin Shmakov , Jian Yang

A standard result from auction theory is that bidding truthfully in a second price auction is a weakly dominant strategy. The result, however, does not apply in the presence of Cost Per Action (CPA) constraints. Such constraints exist, for…

Computer Science and Game Theory · Computer Science 2019-05-13 Benjamin Heymann

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

Today, many auctions are carried out with the help of intermediary platforms like Google and eBay. We refer to such auctions as platform-assisted auctions.Traditionally, the auction theory literature mainly focuses on designing auctions…

Computer Science and Game Theory · Computer Science 2025-01-07 Hao Chung , Ke Wu , Elaine Shi

Algorithms increasingly automate bidding in online auctions, raising concerns about tacit bid suppression and revenue shortfalls. Prior work identifies individual mechanisms behind algorithmic bid suppression, but it remains unclear which…

General Economics · Economics 2026-03-24 Pranjal Rawat

Auto-bidding is an area of increasing importance in the domain of online advertising. We study the problem of designing auctions in an auto-bidding setting with the goal of maximizing welfare at system equilibrium. Previous results showed…

Computer Science and Game Theory · Computer Science 2022-04-26 Aranyak Mehta

We are interested in the problem of optimal commitments in rank-and-bid based auctions, a general class of auctions that include first price and all-pay auctions as special cases. Our main contribution is a novel approach to solve for…

Computer Science and Game Theory · Computer Science 2015-02-27 Zihe Wang , Pingzhong Tang

The Maker Protocol is a decentralized finance application that enables collateralized lending. The application uses open-bid, second-price auctions to complete its loan liquidation process. In this paper, we develop a bidding function for…

Trading and Market Microstructure · Quantitative Finance 2021-05-27 Michael Darlin , Nikolaos Papadis , Leandros Tassiulas

Auto-bidding has recently become a popular feature in ad auctions. This feature enables advertisers to simply provide high-level constraints and goals to an automated agent, which optimizes their auction bids on their behalf. In this paper,…

Theoretical Economics · Economics 2024-05-15 Yeganeh Alimohammadi , Aranyak Mehta , Andres Perlroth

The Combinatorial Multi-Round Ascending Auction (CMRA) is a new auction format used in recent European spectrum auctions. We show that an auction-specific version of truthful bidding leads to an efficient allocation. We then characterize…

Theoretical Economics · Economics 2025-10-23 Bernhard Kasberger , Alexander Teytelboym

In this work, we investigate the online learning problem of revenue maximization in ad auctions, where the seller needs to learn the click-through rates (CTRs) of each ad candidate and charge the price of the winner through a pay-per-click…

Information Retrieval · Computer Science 2024-03-05 Zhe Feng , Christopher Liaw , Zixin Zhou

Auto-bidding is now widely adopted as an interface between advertisers and internet advertising as it allows advertisers to specify high-level goals, such as maximizing value subject to a value-per-spend constraint. Prior research has…

Computer Science and Game Theory · Computer Science 2022-07-11 Christopher Liaw , Aranyak Mehta , Andres Perlroth

In classic auction theory, reserve prices are known to be effective for improving revenue for the auctioneer against quasi-linear utility maximizing bidders. The introduction of reserve prices, however, usually do not help improve total…

Computer Science and Game Theory · Computer Science 2021-11-05 Santiago Balseiro , Yuan Deng , Jieming Mao , Vahab Mirrokni , Song Zuo

We study actual bidding behavior when a new auction format gets introduced into the marketplace. More specifically, we investigate this question using a novel dataset on internet display advertising auctions that exploits a staggered…

General Economics · Economics 2026-05-11 Shumpei Goke , Gabriel Y. Weintraub , Ralph Mastromonaco , Sam Seljan

We study auction design in a setting where agents can communicate over a censorship-resistant broadcast channel like the ones we can implement over a public blockchain. We seek to design credible, strategyproof auctions in a model that…

Computer Science and Game Theory · Computer Science 2024-09-04 Tarun Chitra , Matheus V. X. Ferreira , Kshitij Kulkarni

Over the past few years, more and more Internet advertisers have started using automated bidding for optimizing their advertising campaigns. Such advertisers have an optimization goal (e.g. to maximize conversions), and some constraints…

Computer Science and Game Theory · Computer Science 2023-02-01 Gagan Aggarwal , Andres Perlroth , Junyao Zhao

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

We study the problem of finding the optimal bidding strategy for an advertiser in a multi-platform auction setting. The competition on a platform is captured by a value and a cost function, mapping bidding strategies to value and cost…

Computer Science and Game Theory · Computer Science 2025-02-27 Gagan Aggarwal , Anupam Gupta , Xizhi Tan , Mingfei Zhao

The standard framework of online bidding algorithm design assumes that the seller commits himself to faithfully implementing the rules of the adopted auction. However, the seller may attempt to cheat in execution to increase his revenue if…

Computer Science and Game Theory · Computer Science 2023-11-28 Qian Wang , Xuanzhi Xia , Zongjun Yang , Xiaotie Deng , Yuqing Kong , Zhilin Zhang , Liang Wang , Chuan Yu , Jian Xu , Bo Zheng

Classical optimal auction theory assumes that bids reach the seller directly. We study how this picture changes when a revenue-maximizing intermediary controls access to the seller's auction. Motivated by blockchain auctions, online…

Computer Science and Game Theory · Computer Science 2026-05-22 Jingyi Liu , Aviad Rubinstein , Ertem Nusret Tas , S. Matthew Weinberg , Qianfan Zhang
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