On the Interest of Introducing Randomness in Ad-Word Auctions

Patrick Maillé 1 Bruno Tuffin 2
2 DIONYSOS - Dependability Interoperability and perfOrmance aNalYsiS Of networkS
Inria Rennes – Bretagne Atlantique , IRISA-D2 - RÉSEAUX, TÉLÉCOMMUNICATION ET SERVICES
Abstract : Search engines play and will still play a major role in the use of networks. Sponsored search auctions is the basic tool for a return on investment in this industry, accounting for an increasing part of the business. We introduce here a model for consumer behavior in the context of ad-word auctions. Considering that unsatisfying answers of the ad-word engine will lead some consumers to perform again the same request later on, we show that displaying only the highest bidding or highest revenue-producing advertisers in a deterministic way is not always the best strategy for the ad-word engine. Instead, some randomization among advertisers can provide higher revenues. We also design a Vickrey-Clarke-Groves auction rule for a display probability and compare it with the current generalized-second-price scheme.
Type de document :
Communication dans un congrès
Ana Pont; Guy Pujolle; S. V. Raghavan. Third IFIP TC6 International Conference on Wireless Communications and Information Technology in Developing Countries (WCITD) / IFIP TC 6 International Network of the Future Conference (NF) / Held as Part of World Computer Congress (WCC), Sep 2010, Brisbane, Australia. Springer, IFIP Advances in Information and Communication Technology, AICT-327, pp.229-240, 2010, Communications: Wireless in Developing Countries and Networks of the Future. 〈10.1007/978-3-642-15476-8_22〉
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Patrick Maillé, Bruno Tuffin. On the Interest of Introducing Randomness in Ad-Word Auctions. Ana Pont; Guy Pujolle; S. V. Raghavan. Third IFIP TC6 International Conference on Wireless Communications and Information Technology in Developing Countries (WCITD) / IFIP TC 6 International Network of the Future Conference (NF) / Held as Part of World Computer Congress (WCC), Sep 2010, Brisbane, Australia. Springer, IFIP Advances in Information and Communication Technology, AICT-327, pp.229-240, 2010, Communications: Wireless in Developing Countries and Networks of the Future. 〈10.1007/978-3-642-15476-8_22〉. 〈hal-00609531v2〉

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