Optimal equilibrium bidding strategies for budget constrained bidders in sponsored search auctions

@article{Nittala2012OptimalEB,
  title={Optimal equilibrium bidding strategies for budget constrained bidders in sponsored search auctions},
  author={Chaitanya Nittala and Y. Narahari},
  journal={Operational Research},
  year={2012},
  volume={12},
  pages={317-343}
}
Budget optimization (selecting an optimal set of keywords to bid for, given a limited amount of budget) and bid optimization (determining optimal bids for the selected keywords) in the face of an unpredictable keyword traffic is a challenging problem facing advertisers in sponsored search auctions. Another key requirement in sponsored search auctions is stability of the bid profile, which is usually characterized through the notion of locally envy-free equilibrium. A variety of budget… CONTINUE READING