Ad exchange: Envy-free auctions with mediators
Ben-Zwi O, Henzinger MH, Loitzenbauer V. 2015. Ad exchange: Envy-free auctions with mediators. 11th International Conference on Web and Internet Economics. WINE: International Conference on Web and Internet Economics, LNCS, vol. 9470, 104–117.
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https://doi.org/10.48550/arXiv.1604.05562
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Conference Paper
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Author
Ben-Zwi, Oren;
Henzinger, MonikaISTA ;
Loitzenbauer, Veronika
Series Title
LNCS
Abstract
Ad exchanges are an emerging platform for trading advertisement slots on the web with billions of dollars revenue per year. Every time a user visits a web page, the publisher of that web page can ask an ad exchange to auction off the ad slots on this page to determine which advertisements are shown at which price. Due to the high volume of traffic, ad networks typically act as mediators for individual advertisers at ad exchanges. If multiple advertisers in an ad network are interested in the ad slots of the same auction, the ad network might use a “local” auction to resell the obtained ad slots among its advertisers.
In this work we want to deepen the theoretical understanding of these new markets by analyzing them from the viewpoint of combinatorial auctions. Prior work studied mostly single-item auctions, while we allow the advertisers to express richer preferences over multiple items. We develop a game-theoretic model for the entanglement of the central auction at the ad exchange with the local auctions at the ad networks. We consider the incentives of all three involved parties and suggest a three-party competitive equilibrium, an extension of the Walrasian equilibrium that ensures envy-freeness for all participants. We show the existence of a three-party competitive equilibrium and a polynomial-time algorithm to find one for gross-substitute bidder valuations.
Publishing Year
Date Published
2015-12-09
Proceedings Title
11th International Conference on Web and Internet Economics
Publisher
Springer Nature
Volume
9470
Page
104–117
Conference
WINE: International Conference on Web and Internet Economics
Conference Location
Amsterdam, Netherlands
Conference Date
2015-09-09 – 2015-09-12
ISBN
ISSN
IST-REx-ID
Cite this
Ben-Zwi O, Henzinger MH, Loitzenbauer V. Ad exchange: Envy-free auctions with mediators. In: 11th International Conference on Web and Internet Economics. Vol 9470. Springer Nature; 2015:104–117. doi:10.1007/978-3-662-48995-6_8
Ben-Zwi, O., Henzinger, M. H., & Loitzenbauer, V. (2015). Ad exchange: Envy-free auctions with mediators. In 11th International Conference on Web and Internet Economics (Vol. 9470, pp. 104–117). Amsterdam, Netherlands: Springer Nature. https://doi.org/10.1007/978-3-662-48995-6_8
Ben-Zwi, Oren, Monika H Henzinger, and Veronika Loitzenbauer. “Ad Exchange: Envy-Free Auctions with Mediators.” In 11th International Conference on Web and Internet Economics, 9470:104–117. Springer Nature, 2015. https://doi.org/10.1007/978-3-662-48995-6_8.
O. Ben-Zwi, M. H. Henzinger, and V. Loitzenbauer, “Ad exchange: Envy-free auctions with mediators,” in 11th International Conference on Web and Internet Economics, Amsterdam, Netherlands, 2015, vol. 9470, pp. 104–117.
Ben-Zwi O, Henzinger MH, Loitzenbauer V. 2015. Ad exchange: Envy-free auctions with mediators. 11th International Conference on Web and Internet Economics. WINE: International Conference on Web and Internet Economics, LNCS, vol. 9470, 104–117.
Ben-Zwi, Oren, et al. “Ad Exchange: Envy-Free Auctions with Mediators.” 11th International Conference on Web and Internet Economics, vol. 9470, Springer Nature, 2015, pp. 104–117, doi:10.1007/978-3-662-48995-6_8.
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arXiv 1604.05562