Abstract
This paper proposes a novel budget model based on differential game to deal with budget allocation in competitive search advertisements under a finite time horizon, with consideration of budget constraints. We extend the advertising response function with the dynamical advertising effort u and quality score q to fit search advertising scenarios. We also discuss Nash equilibriums of our model, and study some desirable properties of two kinds of equilibriums in the case with budget constraints: "budget-stable" open-loop Nash equilibrium (BS-OLNE) and "budget-unstable" open-loop Nash equilibrium (BUS-OLNE). We have evaluated our budget model and identified properties with computational experiments. Experimental results show that budget strategies with dynamical advertising elasticity are superior to those with fixed one and our findings on OLNEs are helpful for advertisers to make budget decisions.
| Original language | English (US) |
|---|---|
| Title of host publication | Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011 |
| Publisher | Jindal School of Management, JSOM |
| Pages | 219-220 |
| Number of pages | 2 |
| State | Published - 2011 |
| Event | 21st Workshop on Information Technologies and Systems, WITS 2011 - Shanghai, China Duration: Dec 3 2011 → Dec 4 2011 |
Other
| Other | 21st Workshop on Information Technologies and Systems, WITS 2011 |
|---|---|
| Country | China |
| City | Shanghai |
| Period | 12/3/11 → 12/4/11 |
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Keywords
- Advertising competition
- Budget optimization
- Differential game
- Search auctions
ASJC Scopus subject areas
- Information Systems
Cite this
Budget allocation in competitive search advertisements. / Yang, Yanwu; Li, Juanjuan; Zhang, Jie; Zeng, Dajun.
Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011. Jindal School of Management, JSOM, 2011. p. 219-220.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - Budget allocation in competitive search advertisements
AU - Yang, Yanwu
AU - Li, Juanjuan
AU - Zhang, Jie
AU - Zeng, Dajun
PY - 2011
Y1 - 2011
N2 - This paper proposes a novel budget model based on differential game to deal with budget allocation in competitive search advertisements under a finite time horizon, with consideration of budget constraints. We extend the advertising response function with the dynamical advertising effort u and quality score q to fit search advertising scenarios. We also discuss Nash equilibriums of our model, and study some desirable properties of two kinds of equilibriums in the case with budget constraints: "budget-stable" open-loop Nash equilibrium (BS-OLNE) and "budget-unstable" open-loop Nash equilibrium (BUS-OLNE). We have evaluated our budget model and identified properties with computational experiments. Experimental results show that budget strategies with dynamical advertising elasticity are superior to those with fixed one and our findings on OLNEs are helpful for advertisers to make budget decisions.
AB - This paper proposes a novel budget model based on differential game to deal with budget allocation in competitive search advertisements under a finite time horizon, with consideration of budget constraints. We extend the advertising response function with the dynamical advertising effort u and quality score q to fit search advertising scenarios. We also discuss Nash equilibriums of our model, and study some desirable properties of two kinds of equilibriums in the case with budget constraints: "budget-stable" open-loop Nash equilibrium (BS-OLNE) and "budget-unstable" open-loop Nash equilibrium (BUS-OLNE). We have evaluated our budget model and identified properties with computational experiments. Experimental results show that budget strategies with dynamical advertising elasticity are superior to those with fixed one and our findings on OLNEs are helpful for advertisers to make budget decisions.
KW - Advertising competition
KW - Budget optimization
KW - Differential game
KW - Search auctions
UR - http://www.scopus.com/inward/record.url?scp=84878882632&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84878882632&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84878882632
SP - 219
EP - 220
BT - Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011
PB - Jindal School of Management, JSOM
ER -