Incentivizing advertiser networks to submit multiple bids
- First Online:
- Cite this article as:
- Hummel, P., McAfee, R.P. & Vassilvitskii, S. Int J Game Theory (2016) 45: 1031. doi:10.1007/s00182-015-0501-y
- 146 Downloads
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.