Optimize-and-Dispatch Architecture for Expressive Ad Auctions

Ad auctions are generating massive amounts of revenue for online search engines such as Google. Yet, the level of expressiveness provided to participants in ad auctions could be significantly enhanced. An advantage of this could be improved competition and thus improved revenue to a seller of the right to advertise to a stream of search queries. In this paper, we outline the kinds of expressiveness that one might expect to be useful for ad auctions and introduce a high-level “optimize-and-dispatch” architecture for expressive ad auctions. The architecture is designed to enable expressiveness while retaining real-time response to search queries.

[1]  Tuomas Sandholm,et al.  eMediator: A Next Generation Electronic Commerce Server , 1999, AGENTS '00.

[2]  Subhash Suri,et al.  Market Clearability , 2001, IJCAI.

[3]  Avrim Blum,et al.  Online algorithms for market clearing , 2002, SODA '02.

[4]  Subhash Suri,et al.  Optimal Clearing of Supply/Demand Curves , 2002 .

[5]  Tuomas Sandholm eMediator: A Next Generation Electronic Commerce Server , 2002, Comput. Intell..

[6]  Ho Soo Lee,et al.  Special Issue: 2002 Franz Edelman Award for Achievement in Operations Research and the Management Sciences: Combinatorial and Quantity-Discount Procurement Auctions Benefit Mars, Incorporated and Its Suppliers , 2003, Interfaces.

[7]  Yossi Azar,et al.  Reducing truth-telling online mechanisms to online optimization , 2003, STOC '03.

[8]  Mohammad Taghi Hajiaghayi,et al.  Adaptive limited-supply online auctions , 2004, EC '04.

[9]  Noam Nisan,et al.  Competitive analysis of incentive compatible on-line auctions , 2004, Theor. Comput. Sci..

[10]  Ryan Porter,et al.  Mechanism design for online real-time scheduling , 2004, EC '04.

[11]  Noam Nisan,et al.  Online ascending auctions for gradually expiring items , 2005, SODA '05.

[12]  Tuomas Sandholm,et al.  Optimal Winner Determination Algorithms , 2005 .

[13]  Aranyak Mehta,et al.  AdWords and Generalized On-line Matching , 2005, FOCS.

[14]  Nicole Immorlica,et al.  Multi-unit auctions with budget-constrained bidders , 2005, EC '05.

[15]  Thomas Morris,et al.  Reinventing the Supplier Negotiation Process at Motorola , 2005, Interfaces.

[16]  Mohammad Taghi Hajiaghayi,et al.  Online auctions with re-usable goods , 2005, EC '05.

[17]  Subhash Suri,et al.  Side constraints and non-price attributes in markets , 2006, Games Econ. Behav..

[18]  David Levine,et al.  Changing the Game in Strategic Sourcing at Procter & Gamble: Expressive Competition Enabled by Optimization , 2006, Interfaces.