EMSS 2008 Proceeding

Transient simulation of balanced bidding in keyword auctions

Authors:   Maurizio Naldi,Giuseppe D'Acquisto

Abstract

The synchronous version of the Balanced Bidding strategy for keyword auctions is examined through simulation. In the case of a uniform distribution for advertisers? valuation of clicks, advertisers prefer the highest positioned slots. The slot assignment process matches advertisers? expectations with a probability decaying with the number of slots according to a power law and depending negligibly on the number of advertisers.

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