Sponsored search, market equilibria, and the Hungarian Method

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Sponsored Search, Market Equilibria, and the Hungarian Method

Two-sided matching markets play a prominent role in economic theory. A prime example of such a market is the sponsored search market where n advertisers compete for the assignment of one of k sponsored search results, also known as “slots”, for certain keywords they are interested in. Here, as in other markets of that kind, market equilibria correspond to stable matchings. In this paper, we sho...

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Search , Market Equilibria , and the Hungarian Method

Two-sided matching markets play a prominent role in economic theory. A prime example of such a market is the sponsored search market where n advertisers compete for the assignment of one of k sponsored search results, also known as “slots”, for certain keywords they are interested in. Here, as in other markets of that kind, market equilibria correspond to stable matchings. In this paper, we sho...

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S search is the mechanism whereby advertisers pay a fee to Internet search engines to be displayed alongside organic (nonsponsored) web search results. Based on prior literature, we draw an analogy between these markets and financial markets. We use the analogy as well as the key differences to present a theoretical framework consisting of a set of research questions about the pricing of keywor...

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Sponsored Search Equilibria for Conservative Bidders

Generalized Second Price Auction and its variants has been the main mechanism used by search companies to auction positions for sponsored search links. In this paper we study the social welfare of the Nash equilibria of this game. It is known that socially optimal Nash equilibria exists, and its not hard to see that in the general case there are also very bad equilibria: the gap between a Nash ...

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The analysis to date of sponsored search auctions, originally conducted by Varian and independently by Aggarwal et al., has yet to describe more recent developments such as the emergence of interacting advertising exchanges. This paper assess the significance of such phenomena. Building on Gonen and Vassilvitskii’s model of sponsored search with reserve prices we depict advertising networks as ...

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ژورنال

عنوان ژورنال: Information Processing Letters

سال: 2013

ISSN: 0020-0190

DOI: 10.1016/j.ipl.2012.11.006