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About this paper
Nan An, Weian Li, Qi Qi, Liang Zhang
Researchers from Renmin University of China and Shandong University developed two new merging mechanisms, G-FIX and G-CHANGE, for integrating advertising and organic items on e-commerce platforms in multi-slot settings. These mechanisms guarantee incentive compatibility, individual rationality, and prevent repeated item exposure, achieving constant factor approximation ratios for optimizing combined revenue and user experience.
Key insights
- Optimal `k`-out-of-`n` merging mechanisms satisfying IC and IR exhibit 'form stability,' meaning an item's displayed form remaining unchanged by its own bid implies no changes for other items' forms.
- In the simplest multi-slot case (3 items, 2 slots), the optimal mechanism induces a partial order among organic items, which simplifies the analysis of their optimal allocation.
- The platform's multi-objective optimization problem can be transformed by incorporating Myerson's virtual value and user experience effects into item contributions, allowing for a combined objective function.
Summary by alphaXiv.
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