Advertising network formation based on stochastic diffusion search and market equilibria

  • Authors:

  • Nikos Salamanos;Stavros Lopatatzidis;Michalis Vazirgiannis;Antonis Thomas

  • Affiliations:

  • Athens University of Economics and Business;Athens University of Economics and Business;Athens University of Economics and Business, LIX, Ecole Polytechnique, France;Athens University of Economics and Business

  • Venue:
  • Proceedings of the 28th ACM International Conference on Design of Communication
  • Year:
  • 2010

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Abstract

The concept of social networks in conjunction with concepts from economics has attracted considerable attention in recent years. In this paper we propose the Stochastic Diffusion Market Search (SDMS), a novel contextual advertising method for mutual advertisement hosting among participating entities, where each owns a web site. In the scenario considered each participating agent/web-site buys or sells advertising links. In the proposed method the advertising market and network that formed into the system emerge from agents preferences and their social behavior into the network. SDMS consists of a variation of Stochastic Diffusion Search, a swarm intelligence metaheuristic, and an algorithm for market equilibria. We present an evaluation of the model and the experimental results show that the network potentially converges to a stable stage and the distribution of market prices adheres to power law properties.