Truthful auctions for pricing search keywords
EC '06 Proceedings of the 7th ACM conference on Electronic commerce
An analysis of alternative slot auction designs for sponsored search
EC '06 Proceedings of the 7th ACM conference on Electronic commerce
Mediators in position auctions
Proceedings of the 8th ACM conference on Electronic commerce
Dynamic cost-per-action mechanisms and applications to online advertising
Proceedings of the 17th international conference on World Wide Web
Pay-per-action model for online advertising
WINE'07 Proceedings of the 3rd international conference on Internet and network economics
Click fraud resistant methods for learning click-through rates
WINE'05 Proceedings of the First international conference on Internet and Network Economics
Keyword auction protocol for dynamically adjusting the number of advertisements
Web Intelligence and Agent Systems
Externalities among advertisers in sponsored search
SAGT'11 Proceedings of the 4th international conference on Algorithmic game theory
Revenue enhancement in ad auctions
WINE'11 Proceedings of the 7th international conference on Internet and Network Economics
Stability scores: measuring coalitional stability
Proceedings of the 11th International Conference on Autonomous Agents and Multiagent Systems - Volume 2
Sponsored search auctions: an overview of research with emphasis on game theoretic aspects
Electronic Commerce Research
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We introduce a study of position auctions, with an explicit modeling of user navigation through ads. We refer to our model as the PPA model, since it is most applicable in the context of pay-per-action position auctions. In this model, which is consistent with other recent approaches to user modeling, a typical user searches sequentially over the ordered list of ads. At each point the user has some probability of performing the action associated with the given ad, some probability of moving to the next ad, and some probability of quitting. In the framework of this model, we re-consider two basic mechanisms: the VCG position auction and the generalized second price (GSP) position auction. We study properties of these mechanisms in the context of the PPA model, and in particular show that the GSP position auction possesses a pure strategy equilibrium, and characterize a set of its equilibria. Our main corollary is that the highest revenue one may obtain in an equilibrium of the GSP position auction matches the revenue obtained in the VCG position auction. This suggests that the VCG position auction is preferable to the ad publisher upon the GSP position auction in the context of the PPA position auctions model. The latter is in sharp distinction to the basic result of the usefulness of GSP over VCG in the standard position auctions model, where user behavior is not modeled explicitly. We also study various possibilities for corruption in the PPA setting, and the relative robustness of the mechanisms against the corresponding manipulations.