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Bidding to the Top: Position-based Auctions - page 6 / 23

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The Importance of Being Placed High

Position among ads has many effects.

Higher ads get more clicks.

Placing above a particular competitor is often important.

Higher ads have positive branding effect, even if they do not get clicked. [IAB study]

Is there a natural generalization of GSP that takes position constraints as input?

We study prefix constraints:

Advertiser i gives bid bi and position cutoff i

Ad i  is never placed below position i

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