Simultaneous ad auctions

Itai Ashlagi; Dov Monderer; Moshe Tennenholtz

doi:https://doi.org/10.1287/moor.1100.0475

Simultaneous ad auctions

Itai Ashlagi, Dov Monderer, Moshe Tennenholtz

Data and Decision Sciences

Technion - Israel Institute of Technology

Research output: Contribution to journal › Article › peer-review

Abstract

We consider a model with two simultaneous VCG ad auctions A and B where each advertiser chooses to participate in a single ad auction. We prove the existence and uniqueness of a symmetric equilibrium in that model. Moreover, when the click rates in A are pointwise higher than those in B, we prove that the expected revenue in A is greater than the expected revenue in B in this equilibrium. In contrast, we show that this revenue ranking does not hold when advertisers can participate in both auctions.

Original language	English
Pages (from-to)	1-13
Number of pages	13
Journal	Mathematics of Operations Research
Volume	36
Issue number	1
DOIs	https://doi.org/10.1287/moor.1100.0475
State	Published - Feb 2011

Keywords

Ad auctions
Competition
Equilibrium
Revenue

All Science Journal Classification (ASJC) codes

Computer Science Applications
General Mathematics
Management Science and Operations Research

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https://doi.org/10.1287/moor.1100.0475

Cite this

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AB - We consider a model with two simultaneous VCG ad auctions A and B where each advertiser chooses to participate in a single ad auction. We prove the existence and uniqueness of a symmetric equilibrium in that model. Moreover, when the click rates in A are pointwise higher than those in B, we prove that the expected revenue in A is greater than the expected revenue in B in this equilibrium. In contrast, we show that this revenue ranking does not hold when advertisers can participate in both auctions.

KW - Ad auctions

KW - Competition

KW - Equilibrium

KW - Revenue

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JO - Mathematics of Operations Research

JF - Mathematics of Operations Research

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ER -

Simultaneous ad auctions

Abstract

Keywords

All Science Journal Classification (ASJC) codes

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