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Equilibrium analysis of dynamic bidding in sponsored search auctions
2008
International Journal of Electronic Business
We analyze symmetric pure strategy equilibria in dynamic sponsored search auction games using simulations, restricting the strategies to several in a class of greedy bidding strategies introduced by Cary et al. We show that a particular convergent strategy, "balanced bidding", also exhibits high stability to deviations in the dynamic setting. On the other hand, a cooperative strategy which yields high payoffs to all players is not sustainable in equilibrium play. Additionally, we analyze a
doi:10.1504/ijeb.2008.018071
fatcat:z33omleijvabzm3jrccnboar6a