Alimama Tech
Oct 18, 2023 · Artificial Intelligence
Incentive-Compatible Auction Mechanisms for Automated Bidding with Budget and ROI Constraints
The paper presents incentive‑compatible, individually rational auction mechanisms for automated ad bidding where advertisers report private budget and ROI constraints, characterizes feasible allocation and payment rules via monotone budget functions, introduces a personalized ranking‑score auction using a “key ROI,” and demonstrates through experiments that the design achieves near‑optimal welfare and revenue while ensuring truthful reporting.
ROIauction theoryautomated bidding
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