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From social networks to supply chains, more and more aspects of how humans, firms and organizations interact is mediated by artificial learning agents. As the influence of machine learning systems grows, it is paramount that we study how to…

Multiagent Systems · Computer Science 2022-11-02 Andrea Tacchetti , DJ Strouse , Marta Garnelo , Thore Graepel , Yoram Bachrach

We study the optimal placement of advertisements for interactive platforms like conversational AI assistants. Importantly, conversations add a feature absent in canonical search markets -- time. The evolution of a conversation is…

Theoretical Economics · Economics 2025-02-06 Martino Banchio , Aranyak Mehta , Andres Perlroth

In practice, most auction mechanisms are not strategy-proof, so equilibrium analysis is required to predict bidding behavior. In many auctions, though, an exact equilibrium is not known and one would like to understand whether -- manually…

Computer Science and Game Theory · Computer Science 2024-08-22 Fabian R. Pieroth , Tuomas Sandholm

The transition of display ad exchanges from second-price auctions (SPA) to first-price auctions (FPA) has raised questions about its impact on revenue. Auction theory predicts the revenue equivalence between these two auction formats.…

Computer Science and Game Theory · Computer Science 2024-12-04 Martin Bichler , Alok Gupta , Matthias Oberlechner

Auction design for the modern advertising market has gained significant prominence in the field of game theory. With the recent rise of auto-bidding tools, an increasing number of advertisers in the market are utilizing these tools for…

Computer Science and Game Theory · Computer Science 2024-12-31 Changfeng Xu , Chao Peng , Chenyang Xu , Zhengfeng Yang

In online advertising markets, budget-constrained advertisers acquire ad placements through repeated bidding in auctions on various platforms. We present a strategy for bidding optimally in a set of auctions that may or may not be…

Computer Science and Game Theory · Computer Science 2023-06-14 Fransisca Susan , Negin Golrezaei , Okke Schrijvers

The internet advertising market is a multi-billion dollar industry, in which advertisers buy thousands of ad placements every day by repeatedly participating in auctions. An important and ubiquitous feature of these auctions is the presence…

Computer Science and Game Theory · Computer Science 2022-10-11 Santiago Balseiro , Christian Kroer , Rachitesh Kumar

In online advertising, a set of potential advertisements can be ranked by a certain auction system where usually the top-1 advertisement would be selected and displayed at an advertising space. In this paper, we show a selection bias issue…

Information Retrieval · Computer Science 2022-06-09 Shinya Suzumura , Hitoshi Abe

Most recent papers addressing the algorithmic problem of allocating advertisement space for keywords in sponsored search auctions assume that pricing is done via a first-price auction, which does not realistically model the Generalized…

Data Structures and Algorithms · Computer Science 2009-08-21 Yossi Azar , Benjamin Birnbaum , Anna R. Karlin , C. Thach Nguyen

Sponsored search becomes an easy platform to match potential consumers' intent with merchants' advertising. Advertisers express their willingness to pay for each keyword in terms of bids to the search engine. When a user's query matches the…

Computer Science and Game Theory · Computer Science 2012-07-20 Chenyang Li , Mingyi Hong , Randy Cogill , Alfredo Garcia

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

Internet search companies sell advertisement slots based on users' search queries via an auction. While there has been a lot of attention on the auction process and its game-theoretic aspects, our focus is on the advertisers. In particular,…

Data Structures and Algorithms · Computer Science 2007-05-23 Jon Feldman , S. Muthukrishnan , Martin Pal , Cliff Stein

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

In programmatic advertising, ad slots are usually sold using second-price (SP) auctions in real-time. The highest bidding advertiser wins but pays only the second-highest bid (known as the winning price). In SP, for a single item, the…

Machine Learning · Computer Science 2020-01-22 Aritra Ghosh , Saayan Mitra , Somdeb Sarkhel , Jason Xie , Gang Wu , Viswanathan Swaminathan

We design fair sponsored search auctions that achieve a near-optimal tradeoff between fairness and quality. Our work builds upon the model and auction design of Chawla and Jagadeesan \cite{CJ22}, who considered the special case of a single…

Computer Science and Game Theory · Computer Science 2022-04-11 Shuchi Chawla , Rojin Rezvan , Nathaniel Sauerberg

We present a number of models for the adword auctions used for pricing advertising slots on search engines such as Google, Yahoo! etc. We begin with a general problem formulation which allows the privately known valuation per click to be a…

Computer Science and Game Theory · Computer Science 2007-05-23 Garud Iyengar , Anuj Kumar

Advertising becomes one of the most popular ways of monetizing an online transaction platform. Usually, sponsored advertisements are posted on the most attractive positions to enhance the number of clicks. However, multiple e-commerce…

Computer Science and Game Theory · Computer Science 2022-04-22 Weian Li , Qi Qi , Changjun Wang , Changyuan Yu

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

Advertisement auctions play a crucial role in revenue generation for e-commerce companies. To make the bidding procedure scalable to thousands of auctions, the automatic bidding (autobidding) algorithms are actively developed in the…

Computer Science and Game Theory · Computer Science 2025-10-23 Andrey Pudovikov , Alexandra Khirianova , Ekaterina Solodneva , Aleksandr Katrutsa , Egor Samosvat , Yuriy Dorn

Combinatorial auctions (CA) are a well-studied area in algorithmic mechanism design. However, contrary to the standard model, empirical studies suggest that a bidder's valuation often does not depend solely on the goods assigned to him. For…

Computer Science and Game Theory · Computer Science 2015-10-01 Yun Kuen Cheung , Monika Henzinger , Martin Hoefer , Martin Starnberger