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Pure Price of Anarchy for Generalized Second Price Auction

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arxiv 1305.5404 v1 pith:QRKQYOGX submitted 2013-05-23 cs.GT

Wenkui Ding , Tao Wu , Tao Qin , Tie-Yan Liu This is my paper
classification cs.GT
keywords slotspurepricewhenanarchyauctionfourgeneralized
verification ladder T0 review T1 audit T2 compute T3 formal
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The Generalized Second Price auction (GSP) has been widely used by search engines to sell ad slots. Previous studies have shown that the pure Price Of Anarchy (POA) of GSP is 1.25 when there are two ad slots and 1.259 when three ad slots. For the cases with more than three ad slots, however, only some untight upper bounds of the pure POA were obtained. In this work, we improve previous results in two aspects: (1) We prove that the pure POA for GSP is 1.259 when there are four ad slots, and (2) We show that the pure POA for GSP with more than four ad slots is also 1.259 given the bidders are ranked according to a particular permutation.

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