Dynamic cost-per-action mechanisms and applications to online advertising

  title={Dynamic cost-per-action mechanisms and applications to online advertising},
  author={Hamid Nazerzadeh and Amin Saberi and Rakesh V. Vohra},
We study the Cost-Per-Action or Cost-Per-Acquisition (CPA) charging scheme in online advertising. In this scheme, instead of paying per click, the advertisers pay only when a user takes a specific action (e.g. fills out a form) or completes a transaction on their websites. We focus on designing efficient and incentive compatible mechanisms that use this charging scheme. We describe a mechanism based on a sampling-based learning algorithm that under suitable assumptions is asymptotically… CONTINUE READING
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Internet advertising and the generalized second price auction : Selling billions of dollars worth of keywords

  • Benjamin Edelman, Michael Ostrovsky, Michael Schwarz
  • American Economic Review
  • 2007
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