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Auctions with LLM Summaries
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We study an auction setting in which bidders bid for placement of their content within a summary generated by a large language model (LLM), e.g., an ad auction in which the display is a summary paragraph of multiple ads. This generalizes the classic ad settings such as position auctions to an LLM generated setting, which allows us to handle general display formats. We propose a novel factorized framework in which an auction module and an LLM module work together via a prediction model to provide welfare maximizing summary outputs in an incentive compatible manner. We provide a theoretical analysis of this framework and synthetic experiments to demonstrate the feasibility and validity of the system together with welfare comparisons.
Forward citations
Cited by 2 Pith papers
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A multiplicative-weight aggregation rule with the Brier score makes truthful human feedback a dominant strategy in online RLHF and yields O(sqrt(T)) regret.
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