In a field dataset from a mobile app store, the revenue-optimal exploration prior for new advertisers is 0.1 vs 0.002 for efficiency, a difference that changes revenue by about 32% and reveals a price-thickening channel unique to auction-bandit settings.
Internet advertising and the generalized second-price auction: Selling billions of dollars worth of keywords
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Auctions Meet Bandits: An Empirical Analysis
In a field dataset from a mobile app store, the revenue-optimal exploration prior for new advertisers is 0.1 vs 0.002 for efficiency, a difference that changes revenue by about 32% and reveals a price-thickening channel unique to auction-bandit settings.