Corelab Seminar
2011-2012
Markos Epitropou (NTUA)
Sponsored Search Auctions with Externalities
Abstract.
We revisit the setting of Sponsored Search Auctions. The basic model
of seperable Click-Through Rates seems inadequate to express interdependencies
between advertisers. The first basic idea to capture such externality effects
is by assuming that a user performs ordered search. We introduce the Cascade
model and analyze allocation and payment mechanisms, in terms of their efficiency.
However, research shows that a user's behavior is much more complicated. A
much more general model will be presented and examined.
Finally, I present the basic components of such a problem, in order to talk
about ways to approach.