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- W3123819729 abstract "How should players bid in keyword auctions such as those used by Google, Yahoo! and MSN? We model ad auctions as a dynamic game of incomplete information, so we can study the convergence and robustness properties of various strategies. In particular, we consider best-response bidding strategies for a repeated auction on a single keyword, where in each round, each player chooses some optimal bid for the next round, assuming that the other players merely repeat their previous bids. We focus on a strategy we call Balanced Bidding (bb). If all players use the bb strategy, we show that bids converge to a bid vector that obtains in a complete information static model proposed by Edelman, Ostrovsky and Schwarz (2007). We prove that convergence occurs with probability 1, and we compute the expected time until convergence." @default.
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- W3123819729 date "2008-02-01" @default.
- W3123819729 modified "2023-09-23" @default.
- W3123819729 title "On Best-Response Bidding in GSP Auctions" @default.
- W3123819729 hasPublicationYear "2008" @default.
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