MIT Libraries logoDSpace@MIT

MIT
View Item 
  • DSpace@MIT Home
  • MIT Open Access Articles
  • MIT Open Access Articles
  • View Item
  • DSpace@MIT Home
  • MIT Open Access Articles
  • MIT Open Access Articles
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Dynamic Online-Advertising Auctions as Stochastic Scheduling

Author(s)
Menache, Ishai; Ozdaglar, Asuman E.; Srikant, R.; Acemoglu, Daron
Thumbnail
DownloadAcemoglu_Dynamic online.pdf (220.4Kb)
OPEN_ACCESS_POLICY

Open Access Policy

Creative Commons Attribution-Noncommercial-Share Alike

Terms of use
Creative Commons Attribution-Noncommercial-Share Alike 3.0 http://creativecommons.org/licenses/by-nc-sa/3.0/
Metadata
Show full item record
Abstract
We study dynamic models of online-advertising auctions in the Internet: advertisers compete for space on a web page over multiple time periods, and the web page displays ads in differentiated slots based on their bids and other considerations. The complex interactions between the advertisers and the website (which owns the web page) is modeled as a dynamic game. Our goal is to derive ad-slot placement and pricing strategies which maximize the expected revenue of the website. We show that the problem can be transformed into a scheduling problem familiar to queueing theorists. When only one advertising slot is available on a webpage, we derive the optimal revenue-maximizing solution by making connections to the familiar cμ rule used in queueing theory. More generally, we show that a cμ-like rule can serve as a good suboptimal solution, while the optimal solution itself may be computed using dynamic programming techniques.
Date issued
2009-07
URI
http://hdl.handle.net/1721.1/87056
Department
Massachusetts Institute of Technology. Department of Economics; Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science
Journal
Proceedings of the NetEcon '09: Workshop on the Economics of Networks, Systems and Computation
Citation
Menache, Ishai, Asuman Ozdaglar, R. Srikant, and Daron Acemoglu. "Dynamic Online-Advertising Auctions as Stochastic Scheduling." Proceedings of the NetEcon '09: Workshop on the Economics of Networks, Systems and Computation, Stanford, California, July 7, 2009.
Version: Author's final manuscript

Collections
  • MIT Open Access Articles

Browse

All of DSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

Login

Statistics

OA StatisticsStatistics by CountryStatistics by Department
MIT Libraries
PrivacyPermissionsAccessibilityContact us
MIT
Content created by the MIT Libraries, CC BY-NC unless otherwise noted. Notify us about copyright concerns.