Advancing Ad Auction Realism: Practical Insights & Modeling Implications

arXiv:2307.11732v2 Announce Type: replace
Abstract: Contemporary real-world online ad auctions differ from canonical models [Edelman et al., 2007; Varian, 2009] in at least four ways: (1) values and click-through rates can depend upon users' search queries, but advertisers can only partially "tune" their bids to specific queries; (2) advertisers do not know the number, identity, and precise value distribution of competing bidders; (3) advertisers only receive partial, aggregated feedback, and (4) payment rules are only partially known to bidders. These …

abstract advertisers arxiv canonical click cs.gt cs.lg econ.gn edelman insights least modeling practical q-fin.ec queries search through type values world