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The Generalized Second Price (GSP) auction used typically to model sponsored search auctions does not include the notion of budget constraints, which is present in practice. Motivated by this, we introduce the different variants of GSP…

Computer Science and Game Theory · Computer Science 2013-09-27 Josep Diaz , Ioannis Giotis , Lefteris Kirousis , Evangelos Markakis , Maria Serna

Online auctions are one of the most fundamental facets of the modern economy and power an industry generating hundreds of billions of dollars a year in revenue. Auction theory has historically focused on the question of designing the best…

Computer Science and Game Theory · Computer Science 2021-09-23 Thomas Nedelec , Clément Calauzènes , Noureddine El Karoui , Vianney Perchet

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

Subadditive set functions play a pivotal role in computational economics (especially in combinatorial auctions), combinatorial optimization or artificial intelligence applications such as interpretable machine learning. However, specifying…

Machine Learning · Computer Science 2026-03-12 Martin Černý , David Sychrovský , Filip Úradník , Jakub Černý

We characterize the statistical properties of a large number of agents on two major online auction sites. The measurements indicate that the total number of bids placed in a single category and the number of distinct auctions frequented by…

Statistical Mechanics · Physics 2009-11-10 I. Yang , H. Jeong , B. Kahng , A. -L. Barabasi

In many online advertisement (ad) exchanges, ad slots are each sold via a separate second-price auction. This paper considers the bidder's problem of maximizing the value of ads they purchase in these auctions, subject to budget…

Computer Science and Game Theory · Computer Science 2020-03-16 Jonathan Amar , Nicholas Renegar

We model a procurement scenario in which two \textit{imperfect} bidders act simultaneously on behalf of a single buyer, a configuration common in display advertising and referred to as \textit{side-by-side bidding} but largely unexplored in…

Computer Science and Game Theory · Computer Science 2025-12-05 Benjamin Heymann

In an open-bid auction, a bidder can know the budgets of other bidders. Thus, a sealed-bid auction that hides bidding prices is desirable. However, in previous sealed-bid auction protocols, it has been difficult to provide a ``fund…

Cryptography and Security · Computer Science 2023-12-14 Kota Chin , Keita Emura , Kazumasa Omote , Shingo Sato

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 presents models for predicted click-through rates in position auctions that take into account two possibilities that are not normally considered---that the identities of ads shown in other positions may affect the probability…

Computer Science and Game Theory · Computer Science 2014-09-17 Patrick Hummel , R. Preston McAfee

This paper studies inference in first-price and second-price sealed-bid auctions with many bidders, using an asymptotic framework where the number of bidders increases while the number of auctions remains fixed. Our approach enables…

Econometrics · Economics 2026-04-28 Federico A. Bugni , Yulong Wang

When bidders bid on complex objects, they might be unaware of characteristics effecting their valuations. We assume that each buyer's valuation is a sum of independent random variables, one for each characteristic. When a bidder is unaware…

Theoretical Economics · Economics 2025-12-22 Ying Xue Li , Burkhard C. Schipper

A digital goods auction is a type of auction where potential buyers bid the maximal price that they are willing to pay for a certain item, which a seller can produce at a negligible cost and in unlimited quantity. To maximise her benefits,…

Information Theory · Computer Science 2020-09-22 Patrick Ah-Fat , Michael Huth

Bidding in simultaneous auctions is challenging because an agent's value for a good in one auction may depend on the uncertain outcome of other auctions: the so-called exposure problem. Given the gap in understanding of general simultaneous…

Computer Science and Game Theory · Computer Science 2012-10-19 Michael P. Wellman , Eric Sodomka , Amy Greenwald

In this paper, we deal with the uncertainty of bidding for display advertising. Similar to the financial market trading, real-time bidding (RTB) based display advertising employs an auction mechanism to automate the impression level media…

Computer Science and Game Theory · Computer Science 2017-01-23 Haifeng Zhang , Weinan Zhang , Yifei Rong , Kan Ren , Wenxin Li , Jun Wang

A canonical setting for non-monetary online resource allocation is one where agents compete over multiple rounds for a single item per round, with i.i.d. valuations and additive utilities across rounds. With $n$ symmetric agents, a natural…

Computer Science and Game Theory · Computer Science 2025-12-01 David X. Lin , Giannis Fikioris , Siddhartha Banerjee , Éva Tardos

In this paper, we study behavior of bidders in an experimental launch of a new advertising auction platform by Zillow, as Zillow switched from negotiated contracts to using auctions in several geographically isolated markets. A unique…

Computer Science and Game Theory · Computer Science 2017-04-03 Pooya Jalaly , Denis Nekipelov , Eva Tardos

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

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 progressive second-price auction of Lazar and Semret is a decentralized mechanism for the allocation and real-time pricing of a divisible resource. Our focus is on how delays in the receipt of bid messages, asynchronous analysis by…

Computer Science and Game Theory · Computer Science 2025-11-24 Jordana Blazek , Eric Olson , Fredrick C. Harris