Corelab Seminar

Markos Epitropou (NTUA)
Sponsored Search Auctions with Externalities

We revisit the setting of Sponsored Search Auctions. The basic model of seperable Click-Through Rates seems inadequate to express interdependencies between advertisers. The first basic idea to capture such externality effects is by assuming that a user performs ordered search. We introduce the Cascade model and analyze allocation and payment mechanisms, in terms of their efficiency. However, research shows that a user's behavior is much more complicated. A much more general model will be presented and examined. Finally, I present the basic components of such a problem, in order to talk about ways to approach.