Advertisement allocation for generalized second-pricing schemes

Recently, there has been a surge of interest in algorithms that allocate advertisement space in an online revenue-competitive manner. Most such algorithms, however, assume a pay-as-you-bid pricing scheme. In this paper, we study the query allocation problem where the ad space is priced using the well-known and widely-used generalized second price (GSP) scheme. We observe that the previous algorithms fail to achieve a bounded competitive ratio under the GSP scheme. On the positive side, we present online constant-competitive algorithms for the problem.

• Type: Journal
• Year: 2010
• Where: ORL
• Authors: Ashish Goel, Mohammad Mahdian, Hamid Nazerzadeh, Amin Saberi
• Keywords: Algorithms, Online Revenue-competitive Manner, Operations Research, ORL 2010, Pay-as-you-bid Pricing Scheme