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Effects of value-based mechanism in online advertisement auction

  • Yosuke Motoki
  • , Satoshi Takahashi
  • , Yoshihito Saito
  • , Tokuro Matsuo

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In recent years, the listing service is widely used in search site such as Yahoo!, Google, and MSN. In the service, advertising fee and advertising order are decided by the auction that is called Generalized Second Price Auction (GSP) and the auction is actually employed in a lot of search service sites. There are a lot of researches on GSP in order to analyze and clarify its feature and advantages. However, in those researches, the advertisement is mutually independent. Additionally, the value of advertisement is not considered. In this paper, we propose a new mechanism based on GSP that is used in advertisement auctions. Each advertisement has some value, because users click the advertisement when it may be useful for them. We analyze the auctioneer's profit in comparison between normal GSP, normal VCG (Vickrey-Clarke-Groves Mechanism) and our proposed mechanism. The contribution of our research includes to clarify the features and advantages of advertisement auctions and effects to website owner's profit rate.

Original languageEnglish
Title of host publicationComputer and Information Science 2011
EditorsRoger Lee, Wencai Du, Simon Xu
Pages179-189
Number of pages11
DOIs
Publication statusPublished - 2011
Externally publishedYes

Publication series

NameStudies in Computational Intelligence
Volume364
ISSN (Print)1860-949X

All Science Journal Classification (ASJC) codes

  • Artificial Intelligence

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