Bidding behavior and equilibrium on competitive keyword advertising markets

Yong Yuan, Dajun Zeng, Linjing Li, Ning Bao

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

Online advertisers bidding in keyword auctions through Web search engines are experiencing fierce competition. Based on a model of advertisers' rational competitive preference, we propose a novel solution concept called the Upper Bound Nash Equilibrium(UBNE) targeting at modeling the competitive bidding dynamics. UBNE yields the best outcome for search engines, and provides a rational explanation of the bid inflation dynamics on keyword markets.

Original languageEnglish (US)
Title of host publicationProceedings - 21st Workshop on Information Technologies and Systems, WITS 2011
PublisherJindal School of Management, JSOM
Pages217-218
Number of pages2
Publication statusPublished - 2011
Event21st Workshop on Information Technologies and Systems, WITS 2011 - Shanghai, China
Duration: Dec 3 2011Dec 4 2011

Other

Other21st Workshop on Information Technologies and Systems, WITS 2011
CountryChina
CityShanghai
Period12/3/1112/4/11

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ASJC Scopus subject areas

  • Information Systems

Cite this

Yuan, Y., Zeng, D., Li, L., & Bao, N. (2011). Bidding behavior and equilibrium on competitive keyword advertising markets. In Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011 (pp. 217-218). Jindal School of Management, JSOM.