a profitable sponsored search mechanism

Mechanism Design for Sponsored Search Auctions

The sponsored search auction problem was introduced briefly as an example in Chapter 1. In this chapter, we study this problem in more detail to illustrate a compelling application of mechanism design. We first describe a framework to model this problem as a mechanism design problem under a reasonable set of assumptions. Using this framework, we describe three well known mechanisms for sponsore...

Mechanism Design for Federated Sponsored Search Auctions

Recently there is an increase in smaller, domain–specific search engines that scour the deep web finding information that general–purpose engines are unable to discover. These search engines play a crucial role in the new generation of search paradigms where federated search engines (FSEs) integrate search results from heterogeneous sources. In this paper we pose, for the first time, the proble...

Co-evolution-based mechanism design for sponsored search advertising

Sponsored search advertising (SSA), the primary revenue source of Web search engine companies, has become the dominant form of online advertising. Search engine companies, such as Google and Baidu, are naturally interested in SSA mechanism design with the aim to improve the overall effectiveness and profitability of SSA ecosystems. Due to model intractability, however, traditional game theory a...

Which mechanism for sponsored search auctions with externalities?

Sponsored search is one of the most successful applications of economic mechanisms in real life. A crucial issue is the modeling of the user behavior to provide the best targeting of ads to each user. Experimental studies show that the click through rate of an ad is dramatically affected by both its position and the other displayed ads. However, these externalities rise severe currently open co...

A Context for Sponsored Search

Sponsored Search: a Brief History

We present a very brief history of the origins of sponsored search, which is the presentation of text advertisements in response to a user’s search query.