Webshows that dynamic sequencing of ads can improve the match between users and ads. In this paper, we examine the revenue gains from adopting a revenue-optimal dynamic auction to sequence ads. We propose a unified framework with two components – (1) a theoretical framework to derive the revenue-optimal dynamic auction that captures both Webauctions in the single item case, thanks to Myerson’s work. In contrast, maximizing revenue in dynamic or other multi-dimensional environments is poorly understood. Moreover, known gaps ([49]) between the revenue of adaptive and non-adaptive dynamic auctions imply that assumptions stronger than regularity of the stage distributions will be ...
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Optimal Dynamic Auctions for Revenue Management
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