{"title":"Optimal reserve price in dynamic sponsored search auction","authors":"Wei Yang, Youyi Feng, B. Xiao","doi":"10.1109/ICSSSM.2013.6602543","DOIUrl":null,"url":null,"abstract":"We study how the search engine should update its reserve price in a sponsored search auction for a particular keyword given a certain number of ad links are sold. Different from a static auction where the optimal reserve price is proved to be constant, in a dynamic setting the optimal reserve price is dependent on not only advertisers' per-click values, but also the number of ad links sold. A search engine should gradually raise reserve price as more qualified advertisers arrive, and maintain the same threshold after all first-page positions are occupied.","PeriodicalId":354195,"journal":{"name":"2013 10th International Conference on Service Systems and Service Management","volume":"5 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2013-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"2013 10th International Conference on Service Systems and Service Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1109/ICSSSM.2013.6602543","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
We study how the search engine should update its reserve price in a sponsored search auction for a particular keyword given a certain number of ad links are sold. Different from a static auction where the optimal reserve price is proved to be constant, in a dynamic setting the optimal reserve price is dependent on not only advertisers' per-click values, but also the number of ad links sold. A search engine should gradually raise reserve price as more qualified advertisers arrive, and maintain the same threshold after all first-page positions are occupied.
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