Sponsored Search Equilibria for Conservative Bidders

  title={Sponsored Search Equilibria for Conservative Bidders},
  author={Renato Paes Leme and {\'E}va Tardos},
Generalized Second Price Auction and its variants has been the main mechanism used by search companies to auction positions for sponsored search links. In this paper we study the social welfare of the Nash equilibria of this game. It is known that socially optimal Nash equilibria exists, and its not hard to see that in the general case there are also very bad equilibria: the gap between a Nash equilibrium and the socially optimal can be arbitrarily large. In this paper, we consider the case… CONTINUE READING