Incentivizing advertiser networks to submit multiple bids

This paper illustrates a method for making side payments to advertiser networks that creates an incentive for the advertiser networks to submit the second-highest bids they received to an ad exchange and simultaneously ensures that the publishers will make more money on average in the short run as a...

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Bibliographic Details
Published in:International journal of game theory 2016-11, Vol.45 (4), p.1031-1052
Main Authors: Hummel, Patrick, McAfee, R. Preston, Vassilvitskii, Sergei
Format: Article
Language:English
Subjects:
Advertising
Alliances
Auctions
Behavioral/Experimental Economics
Bids
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Game Theory
Incentives
Operations Research/Decision Theory
Original Paper
Social and Behav. Sciences
Studies
Citations: Items that this one cites
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Summary:This paper illustrates a method for making side payments to advertiser networks that creates an incentive for the advertiser networks to submit the second-highest bids they received to an ad exchange and simultaneously ensures that the publishers will make more money on average in the short run as a result of adopting this scheme. We also illustrate how this payment scheme affects publisher payoffs in the long run after advertisers have a chance to modify their strategies in response to the changed incentives of the mechanism.
ISSN:0020-7276
1432-1270
DOI:10.1007/s00182-015-0501-y