Dynamic Online-Advertising Auctions as Stochastic Scheduling
We study dynamic models of online-advertising auctions in the Internet: advertisers compete for space on a web page over multiple time periods, and the web page displays ads in differentiated slots based on their bids and other considerations. The complex interactions between the advertisers and the...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
| Published: |
2014
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| Online Access: | http://hdl.handle.net/1721.1/87056 https://orcid.org/0000-0002-1827-1285 https://orcid.org/0000-0003-0908-7491 |
| _version_ | 1826214057241214976 |
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| author | Menache, Ishai Ozdaglar, Asuman E. Srikant, R. Acemoglu, Daron |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Menache, Ishai Ozdaglar, Asuman E. Srikant, R. Acemoglu, Daron |
| author_sort | Menache, Ishai |
| collection | MIT |
| description | We study dynamic models of online-advertising auctions in the Internet: advertisers compete for space on a web page over multiple time periods, and the web page displays ads in differentiated slots based on their bids and other considerations. The complex interactions between the advertisers and the website (which owns the web page) is modeled as a dynamic game. Our goal is to derive ad-slot placement and pricing strategies which maximize the expected revenue of the website. We show that the problem can be transformed into a scheduling problem familiar to queueing theorists. When only one advertising slot is available on a webpage, we derive the optimal revenue-maximizing solution by making connections to the familiar cμ rule used in queueing theory. More generally, we show that a cμ-like rule can serve as a good suboptimal solution, while the optimal solution itself may be computed using dynamic programming techniques. |
| first_indexed | 2024-09-23T15:59:07Z |
| format | Article |
| id | mit-1721.1/87056 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T15:59:07Z |
| publishDate | 2014 |
| record_format | dspace |
| spelling | mit-1721.1/870562022-09-29T17:27:18Z Dynamic Online-Advertising Auctions as Stochastic Scheduling Menache, Ishai Ozdaglar, Asuman E. Srikant, R. Acemoglu, Daron Massachusetts Institute of Technology. Department of Economics Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science Menache, Ishai Ozdaglar, Asuman E. Acemoglu, Daron We study dynamic models of online-advertising auctions in the Internet: advertisers compete for space on a web page over multiple time periods, and the web page displays ads in differentiated slots based on their bids and other considerations. The complex interactions between the advertisers and the website (which owns the web page) is modeled as a dynamic game. Our goal is to derive ad-slot placement and pricing strategies which maximize the expected revenue of the website. We show that the problem can be transformed into a scheduling problem familiar to queueing theorists. When only one advertising slot is available on a webpage, we derive the optimal revenue-maximizing solution by making connections to the familiar cμ rule used in queueing theory. More generally, we show that a cμ-like rule can serve as a good suboptimal solution, while the optimal solution itself may be computed using dynamic programming techniques. 2014-05-19T19:34:38Z 2014-05-19T19:34:38Z 2009-07 Article http://purl.org/eprint/type/JournalArticle http://hdl.handle.net/1721.1/87056 Menache, Ishai, Asuman Ozdaglar, R. Srikant, and Daron Acemoglu. "Dynamic Online-Advertising Auctions as Stochastic Scheduling." Proceedings of the NetEcon '09: Workshop on the Economics of Networks, Systems and Computation, Stanford, California, July 7, 2009. https://orcid.org/0000-0002-1827-1285 https://orcid.org/0000-0003-0908-7491 en_US http://netecon.seas.harvard.edu/NetEcon09/index09.html Proceedings of the NetEcon '09: Workshop on the Economics of Networks, Systems and Computation Creative Commons Attribution-Noncommercial-Share Alike 3.0 http://creativecommons.org/licenses/by-nc-sa/3.0/ application/pdf MIT web domain |
| spellingShingle | Menache, Ishai Ozdaglar, Asuman E. Srikant, R. Acemoglu, Daron Dynamic Online-Advertising Auctions as Stochastic Scheduling |
| title | Dynamic Online-Advertising Auctions as Stochastic Scheduling |
| title_full | Dynamic Online-Advertising Auctions as Stochastic Scheduling |
| title_fullStr | Dynamic Online-Advertising Auctions as Stochastic Scheduling |
| title_full_unstemmed | Dynamic Online-Advertising Auctions as Stochastic Scheduling |
| title_short | Dynamic Online-Advertising Auctions as Stochastic Scheduling |
| title_sort | dynamic online advertising auctions as stochastic scheduling |
| url | http://hdl.handle.net/1721.1/87056 https://orcid.org/0000-0002-1827-1285 https://orcid.org/0000-0003-0908-7491 |
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