Sponsored Search Auctions
Stub. Existing sponsored-search mechanisms (GSP vs. VCG), a static equilibrium model of ad-slot auctions, and dynamic aspects (budgets, repeated play). (AGT ch. 28)
The flagship applied-mechanism-design case study: how search engines auction ad slots, why the generalized second-price (GSP) auction used in practice is not equivalent to VCG (yet still has good equilibria), a static model of the resulting game, and dynamic issues (budget constraints, repeated interaction) that the static model ignores.
Outline (TODO — flesh out each)
- Existing models and mechanisms (GSP vs. VCG)
- A static model of sponsored search
- Dynamic aspects
- Open questions