DeepAI AI Chat
Log In Sign Up

Reasoning about Human-Friendly Strategies in Repeated Keyword Auctions

by   Francesco Belardinelli, et al.

In online advertising, search engines sell ad placements for keywords continuously through auctions. This problem can be seen as an infinitely repeated game since the auction is executed whenever a user performs a query with the keyword. As advertisers may frequently change their bids, the game will have a large set of equilibria with potentially complex strategies. In this paper, we propose the use of natural strategies for reasoning in such setting as they are processable by artificial agents with limited memory and/or computational power as well as understandable by human users. To reach this goal, we introduce a quantitative version of Strategy Logic with natural strategies in the setting of imperfect information. In a first step, we show how to model strategies for repeated keyword auctions and take advantage of the model for proving properties evaluating this game. In a second step, we study the logic in relation to the distinguishing power, expressivity, and model-checking complexity for strategies with and without recall.


page 1

page 2

page 3

page 4


Keyword Optimization in Sponsored Search Advertising: A Multi-Level Computational Framework

In sponsored search advertising, keywords serve as an essential bridge l...

Extended Graded Modalities in Strategy Logic

Strategy Logic (SL) is a logical formalism for strategic reasoning in mu...

Controlling conditional expectations by zero-determinant strategies

We show that memory-n zero-determinant strategies in repeated games can ...

Keyword Decisions in Sponsored Search Advertising: A Literature Review and Research Agenda

In sponsored search advertising (SSA), keywords serve as the basic unit ...

Learning with Opponent Modeling in Repeated Auctions

We design an algorithm to learn bidding strategies in repeated auctions....

Learning in repeated auctions

Auction theory historically focused on the question of designing the bes...