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Related papers: Autobidding Equilibria in Sponsored Shopping

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In a sponsored search auction, decisions about how to rank ads impose tradeoffs between objectives such as revenue and welfare. In this paper, we examine how these tradeoffs should be made. We begin by arguing that the most natural solution…

Computer Science and Game Theory · Computer Science 2013-04-30 Ben Roberts , Dinan Gunawardena , Ian A. Kash , Peter Key

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

E-commerce platforms usually present an ordered list, mixed with several organic items and an advertisement, in response to each user's page view request. This list, the outcome of ad auction and allocation processes, directly impacts the…

Computer Science and Game Theory · Computer Science 2024-04-12 Xuejian Li , Ze Wang , Bingqi Zhu , Fei He , Yongkang Wang , Xingxing Wang

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

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

We examine trade-offs among stakeholders in ad auctions. Our metrics are the revenue for the utility of the auctioneer, the number of clicks for the utility of the users and the welfare for the utility of the advertisers. We show how to…

Computer Science and Game Theory · Computer Science 2014-04-22 Yoram Bachrach , Sofia Ceppi , Ian A. Kash , Peter Key , David Kurokawa

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

The Generalized Second Price auction is the primary method by which sponsered search advertisements are sold. We study the performance of this auction under various equilibrium concepts. In particular, we demonstrate that the Bayesian Price…

Computer Science and Game Theory · Computer Science 2010-11-16 Brendan Lucier , Renato Paes Leme

In this survey, we summarize recent developments in research fueled by the growing adoption of automated bidding strategies in online advertising. We explore the challenges and opportunities that have arisen as markets embrace this…

Throttling is a popular method of budget management for online ad auctions in which the platform modulates the participation probability of an advertiser in order to smoothly spend her budget across many auctions. In this work, we…

Computer Science and Game Theory · Computer Science 2023-02-07 Xi Chen , Christian Kroer , Rachitesh Kumar

We present an algorithm for constructing an optimal slate of sponsored search advertisements which respects the ordering that is the outcome of a generalized second price auction, but which must also accommodate complicating factors such as…

Discrete Mathematics · Computer Science 2007-06-12 S. Sathiya Keerthi , John A. Tomlin

Existing auto-bidding algorithms in digital advertising often treat the value of an ad opportunity as the revenue obtained when an ad is shown and/or clicked, and bid accordingly. This can lead to wasteful spending because the true value is…

Computer Science and Game Theory · Computer Science 2026-05-05 Yuxiao Wen , Zihao Hu , Yanjun Han , Yuan Yao , Zhengyuan Zhou

Modern commercial Internet search engines display advertisements along side the search results in response to user queries. Such sponsored search relies on market mechanisms to elicit prices for these advertisements, making use of an…

Computer Science and Game Theory · Computer Science 2008-12-18 Jon Feldman , S. Muthukrishnan

Many companies rely on advertising platforms such as Google, Facebook, or Instagram to recruit a large and diverse applicant pool for job openings. Prior works have shown that equitable bidding may not result in equitable outcomes due to…

Computers and Society · Computer Science 2023-05-24 Inbal Livni Navon , Charlotte Peale , Omer Reingold , Judy Hanwen Shen

In a sponsored search auction the advertisement slots on a search result page are generally ordered by click-through rate. Bidders have a valuation, which is usually assumed to be linear in the click-through rate, a budget constraint, and…

Computer Science and Game Theory · Computer Science 2011-12-30 Riccardo Colini-Baldeschi , Monika Henzinger , Stefano Leonardi , Martin Starnberger

In online ad markets, a rising number of advertisers are employing bidding agencies to participate in ad auctions. These agencies are specialized in designing online algorithms and bidding on behalf of their clients. Typically, an agency…

Computer Science and Game Theory · Computer Science 2023-06-14 Yurong Chen , Qian Wang , Zhijian Duan , Haoran Sun , Zhaohua Chen , Xiang Yan , Xiaotie Deng

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

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

Bidding is a key element of search advertising, but the variation in bidders' valuations and strategies is often overlooked. Disclosing bid information helps uncover this heterogeneity and enables platforms to tailor their disclosure…

General Economics · Economics 2024-10-10 Zhu Mingxi , Song Michelle

The popular generalized second price (GSP) auction for sponsored search is built upon a separable model of click-through-rates that decomposes the likelihood of a click into the product of a "slot effect" and an "advertiser effect" --- if…

Computer Science and Game Theory · Computer Science 2014-10-14 Ruggiero Cavallo , Christopher A. Wilkens