GSP-ExR: GSP Protocol with an Exclusive Right for Keyword Auctions
- Yuko Sakurai(Kyushu University)
- Atsushi Iwasaki(Kyushu University)
- Yasumasa Saito(Kyushu University)
- Makoto Yokoo(Kyushu University)
We propose a keyword auction protocol called the Generalized Second Price with an Exclusive Right (GSP-ExR). In existing keyword auctions, the number of displayed advertisements is determined in advance. Thus, we consider adjusting the number of advertisements dynamically based on bids. In the GSP-ExR, the number of slots can be either 1 or K. When K slots are displayed, the protocol is identical to the GSP. If the value per click of the highest ranked bidder is large enough, then this bidder can exclusively display her advertisement by paying a premium. Thus, this pricing scheme is relatively simple and seller revenue is at least as good as the GSP. Also, in the GSP-ExR, the highest ranked bidder has no incentive to change the number of slots by over/under-bidding as long as she retains the top position.
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