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The generalized second-price auction (GSP) is a non-truthful auction mechanism for multiple items. Each bidder places a bid. The highest bidder gets the first slot, the second-highest, the second slot and so on, but the highest bidder pays the price bid by the second-highest bidder, the second-highest pays the price bid by the third-highest, and so on. First conceived as a natural extension of the Vickrey auction, it conserves some of the desirable properties of the Vickrey auction. It is used mainly in the context of keyword auctions, where sponsored search slots are sold on an auction basis. The first analyses of GSP are in the economics literature by Edelman, Ostrovsky, and Schwarz〔Benjamin Edelman, Michael Ostrovsky, and Michael Schwarz: "(Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords )". American Economic Review 97(1), 2007 pp 242-259〕 and by Varian.〔H. R. Varian: "(Position auctions. International Journal of Industrial Organization, 2006 )".〕 It is employed by Google's AdWords technology. == Formal model == Suppose that there are bidders and slots. Each slot has a probability of being clicked of . We can assume that top slots have a larger probability of being clicked, so: : We can think of additional virtual slots with click-through-rate zero, so, for . Now, each bidder has an intrinsic value for one slot submits a bid indicating the maximum he is willing to pay for a slot (which is his bid reported valuation – notice it doesn't need to be the same as his true valuation ). We order the bidders by their value, let's say: : and charge each bidder a price (this will be 0 if they didn't win a slot). Slots are sold in a pay-per-click model, so a bidder just pays for a slot if the user actually clicks in that slot. We say the utility of bidder when allocated to slot is . The total social welfare from owning or selling slots is given by: where is the bidder allocated to slot . The total revenue is given by: 抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)』 ■ウィキペディアで「Generalized second-price auction」の詳細全文を読む スポンサード リンク
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