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