A Optimal User Search
نویسندگان
چکیده
Most research in sponsored search auctions assume that users act in a stochastic manner, ignoring potential strategic deliberations. We propose a simple model of user costs and benefits. We then show how to formulate the corresponding sponsored search environment as a Markov decision process. For certain sponsored-search mechanisms, we are able to derive the optimal (i.e., utility-maximizing) user search behavior. The optimal behavior is characterized by a threshold policy in which users view ads in a top-down manner and click on those whose perceived quality exceeds a fixed threshold.
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