Incentivizing advertiser networks to submit multiple bids
Patrick Hummel (),
Randolph McAfee and
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Patrick Hummel: Google Inc.
Sergei Vassilvitskii: Google Inc.
International Journal of Game Theory, 2016, vol. 45, issue 4, No 12, 1052 pages
Abstract 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.
Keywords: Advertiser networks; Advertising exchanges; Auctions (search for similar items in EconPapers)
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