NEW PROPOSALS FROM GOOGLE ON HOW SPONSORSHIP WORKS
Posted: Sun Jan 19, 2025 4:28 am
In sponsored searches, a set number of spots are available to a set number of advertisers interested in a term, raising questions from the perspective of game theory and other economic planning, according to research by Google and the University of Waterloo.
"Internet advertising and bidding for sponsorships bank data have attracted much attention in the academic literature and there are many papers discussing various aspects of pricing and of spaces and their location for interested parties," the study says.
The researchers suggest that there is a two-party game that is configured in the bidding for space that is governed by the generalized second price (GSP) mechanism.
The rules of this system and its configuration have been the subject of much discussion in the Internet world, so the authors of the study are trying to prove the existence of a search for stability in the system, which attempts to satisfy the scarcity of space and the needs of advertisers.
"Internet advertising and bidding for sponsorships bank data have attracted much attention in the academic literature and there are many papers discussing various aspects of pricing and of spaces and their location for interested parties," the study says.
The researchers suggest that there is a two-party game that is configured in the bidding for space that is governed by the generalized second price (GSP) mechanism.
The rules of this system and its configuration have been the subject of much discussion in the Internet world, so the authors of the study are trying to prove the existence of a search for stability in the system, which attempts to satisfy the scarcity of space and the needs of advertisers.