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Towards Better Models of Externalities in Sponsored Search Auctions

Gatti, N and Rocco, M and Serafino, P and Ventre, C (2018) 'Towards Better Models of Externalities in Sponsored Search Auctions.' Theoretical Computer Science, 745. pp. 150-162. ISSN 0304-3975

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Sponsored Search Auctions (SSAs) arguably represent the problem at the intersection of computer science and economics with the deepest applications in real life. Within the realm of SSAs, the study of the effects that showing one ad has on the other ads, a.k.a. externalities in economics, is of utmost importance and has so far attracted the attention of much research. However, even the basic question of modeling the problem has so far escaped a definitive answer. The popular cascade model is arguably too idealized to really describe the phenomenon yet it allows a good comprehension of the problem. Other models, instead, describe the setting more adequately but are too complex to permit a satisfactory theoretical analysis. In this work, we attempt to get the best of both approaches: firstly, we define a number of general mathematical formulations for the problem in the attempt to have a rich description of externalities in SSAs and, secondly, prove a host of results drawing a nearly complete picture about the computational complexity of the problem. We complement these approximability results with some considerations about mechanism design in our context.

Item Type: Article
Uncontrolled Keywords: Mechanism Design; Sponsored Search Auction; Externalities
Subjects: Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Divisions: Faculty of Science and Health
Faculty of Science and Health > Computer Science and Electronic Engineering, School of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 15 Jun 2018 13:38
Last Modified: 23 Sep 2022 19:24

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