We consider the "Offline Ad Slot Scheduling" problem, where advertisers must be scheduled to "sponsored search" slots during a given period of time. Advertisers specify a budget constraint, as well as a maximum cost per click, and may not be assigned to more than one slot for a particular search.
We give a truthful mechanism under the utility model where bidders try to maximize their clicks, subject to their personal constraints. In addition, we show that the revenue-maximizing mechanism is not truthful, but has a Nash equilibrium whose outcome is identical to our mechanism. As far as we can tell, this is the first treatment of sponsored search that directly incorporates both multiple slots and budget constraints into an analysis of incentives.
Our mechanism employs a descending-price auction that maintains a solution to a certain machine scheduling problem whose job lengths depend on the price, and hence is variable over the auction. The price stops when the set of bidders that can afford that price pack exactly into a block of ad slots, at which point the mechanism allocates that block and continues on the remaining slots. To prove our result on the equilibrium of the revenue-maximizing mechanism, we first show that a greedy algorithm suffices to solve the revenue-maximizing linear program; we then use this insight to prove that bidders allocated in the same block of our mechanism have no incentive to deviate from bidding the fixed price of that block.
We propose a mechanism to allocate slots fairly at congested airports. This mechanism: (a) ensures that the slots are allocated according to the true valuations of airlines, (b) provides fair opportunities to the flights connecting remote cities to large airports, and (c) controls the number of flights in each slot to minimize congestion. The mechanism draws inspiration from economic theory. It allocates the slots based on an affine maximizer allocation rule and charges payments to the airlines such that they are incentivized to reveal their true valuations. The allocation also optimizes the o…
Sponsored search auctions constitute one of the most successful applications of microeconomic mechanisms. In mechanism design, auctions are usually designed to incentivize advertisers to bid their truthful valuations and to assure both the advertisers and the auctioneer a non-negative utility. Nonetheless, in sponsored search auctions, the click-through-rates (CTRs) of the advertisers are often unknown to the auctioneer and thus standard truthful mechanisms cannot be directly applied and must be paired with an effective learning algorithm for the estimation of the CTRs. This introduces the cri…
In pay-per click sponsored search auctions which are currently extensively used by search engines, the auction for a keyword involves a certain number of advertisers (say k) competing for available slots (say m) to display their ads. This auction is typically conducted for a number of rounds (say T). There are click probabilities mu_ij associated with each agent-slot pairs. The goal of the search engine is to maximize social welfare of the advertisers, that is, the sum of values of the advertisers. The search engine does not know the true values advertisers have for a click to their respective…
The framework of budget-feasible mechanism design studies procurement auctions where the auctioneer (buyer) aims to maximize his valuation function subject to a hard budget constraint. We study the problem of designing truthful mechanisms that have good approximation guarantees and never pay the participating agents (sellers) more than the budget. We focus on the case of general (non-monotone) submodular valuation functions and derive the first truthful, budget-feasible and $O(1)$-approximate mechanisms that run in polynomial time in the value query model, for both offline and online auctions.…
Motivated by the need of {\em social distancing} during a pandemic, we consider an approach to schedule the visitors of a facility (e.g., a general store). Our algorithms take input from the citizens and schedule the store's discrete time-slots based on their importance to visit the facility. Naturally, the formulation applies to several similar problems. We consider {\em indivisible} job requests that take single or multiple slots to complete. The salient properties of our approach are: it (a)~ensures social distancing by ensuring a maximum population in a given time-slot at the facility, (b)…
Stochastic multi-armed bandit (MAB) mechanisms are widely used in sponsored search auctions, crowdsourcing, online procurement, etc. Existing stochastic MAB mechanisms with a deterministic payment rule, proposed in the literature, necessarily suffer a regret of $Ω(T^{2/3})$, where $T$ is the number of time steps. This happens because the existing mechanisms consider the worst case scenario where the means of the agents' stochastic rewards are separated by a very small amount that depends on $T$. We make, and, exploit the crucial observation that in most scenarios, the separation between the ag…
We study online auction settings in which agents arrive and depart dynamically in a random (secretary) order, and each agent's private type consists of the agent's arrival and departure times, value and budget. We consider multi-unit auctions with additive agents for the allocation of both divisible and indivisible items. For both settings, we devise truthful mechanisms that give a constant approximation with respect to the auctioneer's revenue, under a large market assumption. For divisible items, we devise in addition a truthful mechanism that gives a constant approximation with respect to t…
Crowd sensing is a new paradigm which leverages the pervasive smartphones to efficiently collect and upload sensing data, enabling numerous novel applications. To achieve good service quality for a crowd sensing application, incentive mechanisms are necessary for attracting more user participation. Most of existing mechanisms apply only for the budget-constraint scenario where the platform (the crowd sensing organizer) has a budget limit. On the contrary, we focus on a different scenario where the platform has a service limit. Based on the offline and online auction model, we consider a genera…
We study the problem of allocating Electric Vehicles (EVs) to charging stations and scheduling their charging. We develop offline and online solutions that treat EV users as self-interested agents that aim to maximise their profit and minimise the impact on their schedule. We formulate the problem of the optimal EV to charging station allocation as a Mixed Integer Programming (MIP) one and we propose two pricing mechanisms: A fixed-price one, and another that is based on the well known Vickrey-Clark-Groves (VCG) mechanism. Later, we develop online solutions that incrementally call the MIP-base…
It is widely believed that computing payments needed to induce truthful bidding is somehow harder than simply computing the allocation. We show that the opposite is true: creating a randomized truthful mechanism is essentially as easy as a single call to a monotone allocation rule. Our main result is a general procedure to take a monotone allocation rule for a single-parameter domain and transform it (via a black-box reduction) into a randomized mechanism that is truthful in expectation and individually rational for every realization. The mechanism implements the same outcome as the original a…
We consider the optimal pricing problem for a model of the rich media advertisement market, as well as other related applications. In this market, there are multiple buyers (advertisers), and items (slots) that are arranged in a line such as a banner on a website. Each buyer desires a particular number of {\em consecutive} slots and has a per-unit-quality value $v_i$ (dependent on the ad only) while each slot $j$ has a quality $q_j$ (dependent on the position only such as click-through rate in position auctions). Hence, the valuation of the buyer $i$ for item $j$ is $v_iq_j$. We want to decide…
Mobile crowdsourced sensing (MCS) is a new paradigm which takes advantage of the pervasive smartphones to efficiently collect data, enabling numerous novel applications. To achieve good service quality for a MCS application, incentive mechanisms are necessary to attract more user participation. Most of existing mechanisms apply only for the offline scenario where all users' information are known a priori. On the contrary, we focus on a more real scenario where users arrive one by one online in a random order. We model the problem as an online auction in which the users submit their private typ…
Crowd sensing is a new paradigm which leverages the pervasive smartphones to efficiently collect sensing data, enabling numerous novel applications. To achieve good service quality for a crowd sensing application, incentive mechanisms are indispensable to attract more user participation. Most of existing mechanisms only apply for the offline scenario, where the system has full information about the users' sensing profiles, i.e., a set of locations or mobility as well as the type of smartphones used, and their true costs. On the contrary, we focus on a more real scenario where users with their …
In this paper, we consider the problem of incentive mechanism design for smart-phone crowd-sourcing. Each user participating in crowd-sourcing submits a set of tasks it can accomplish and its corresponding bid. The platform then selects the users and their payments to maximize its utility while ensuring truthfulness, individual rationality, profitability, and polynomial algorithm complexity. Both the offline and the online scenarios are considered, where in the offline case, all users submit their profiles simultaneously, while in the online case they do it sequentially, and the decision wheth…
Booth School of Business, University of Chicago（芝加哥大学布斯商学院）；Northwestern University（西北大学）；Yale University（耶鲁大学）
Dynamic mechanism design has garnered significant attention from both computer scientists and economists in recent years. By allowing agents to interact with the seller over multiple rounds, where agents' reward functions may change with time and are state-dependent, the framework is able to model a rich class of real-world problems. In these works, the interaction between agents and sellers is often assumed to follow a Markov Decision Process (MDP). We focus on the setting where the reward and transition functions of such an MDP are not known a priori, and we are attempting to recover the opt…
Federated learning makes it possible for all parties with data isolation to train the model collaboratively and efficiently while satisfying privacy protection. To obtain a high-quality model, an incentive mechanism is necessary to motivate more high-quality workers with data and computing power. The existing incentive mechanisms are applied in offline scenarios, where the task publisher collects all bids and selects workers before the task. However, it is practical that different workers arrive online in different orders before or during the task. Therefore, we propose a reverse auction-based…
In sponsored search, a number of advertising slots is available on a search results page, and have to be allocated among a set of advertisers competing to display an ad on the page. This gives rise to a bipartite matching market that is typically cleared by the way of an automated auction. Several auction mechanisms have been proposed, with variants of the Generalized Second Price (GSP) being widely used in practice. A rich body of work on bipartite matching markets builds upon the stable marriage model of Gale and Shapley and the assignment model of Shapley and Shubik. We apply insights from …
Online advertising is the main source of revenue for many Internet firms. A central component of online advertising is the underlying mechanism that selects and prices the winning ads for a given ad slot. In this paper we study designing a mechanism for the Combinatorial Auction with Identical Items (CAII) in which we are interested in selling $k$ identical items to a group of bidders each demanding a certain number of items between $1$ and $k$. CAII generalizes important online advertising scenarios such as image-text and video-pod auctions [GK14]. In image-text auction we want to fill an adv…
We study signaling in Bayesian ad auctions, in which bidders' valuations depend on a random, unknown state of nature. The auction mechanism has complete knowledge of the actual state of nature, and it can send signals to bidders so as to disclose information about the state and increase revenue. For instance, a state may collectively encode some features of the user that are known to the mechanism only, since the latter has access to data sources unaccessible to the bidders. We study the problem of computing how the mechanism should send signals to bidders in order to maximize revenue. While t…
