Truthful auctions for pricing search keywords

• DOI: 10.1145/1134707.1134708
• Publication Date: 2006-07-24T16:53:01Z
• Authors: Gagan Aggarwal; Ashish Goel; Rajeev Motwani
• Keywords: 0202 electrical engineering, electronic engineering, information engineering; 02 engineering and technology

We present a truthful auction for pricing advertising slots on web-page assuming that advertisements different merchants must be ranked in decreasing order of their (weighted) bids. This captures both the Overture model where bidders are submitted bids, and Google expected revenue (or utility) advertisement generates. Assuming separable click-through rates, we prove revenue-equivalence between our non-truthful next-price auctions currently use.