A quality-preserving auction framework for LLM advertising uses RAG-based endogenous reserves and KL-regularized or screened VCG mechanisms to achieve DSIC, IR, higher revenue, and better semantic fidelity than baselines.
Online auction design using distribution-free uncertainty quantification with applications to e-commerce.Journal of the American Statistical Association, 121(553):137–148
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Mechanism Design for Quality-Preserving LLM Advertising
A quality-preserving auction framework for LLM advertising uses RAG-based endogenous reserves and KL-regularized or screened VCG mechanisms to achieve DSIC, IR, higher revenue, and better semantic fidelity than baselines.