Bid Optimization for Internet Graphical Ad Auction Systems via Special Ordered Sets

Details Bid Optimization for Internet Graphical Ad Auction Systems via Special Ordered Sets Bid Optimization for Internet Graphical Ad Auction Systems via Special Ordered Sets

2007-06-26

arxiv.org/abs/0706.3865v1

Computer Science

Discrete Mathematics

Scientific paper

This paper describes an optimization model for setting bid levels for certain
types of advertisements on web pages. This model is non-convex, but we are able
to obtain optimal or near-optimal solutions rapidly using branch and cut
open-source software. The financial benefits obtained using the prototype
system have been substantial.

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