Large-Scale Auto-bidding with Nash Equilibrium Constraints

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Mou, Zhiyu, Xu, Miao, Bai, Rongquan, Yang, Zhuoran, Yu, Chuan, Xu, Jian, Zheng, Bo
Format: Preprint
Published: 2025
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866918318295744512
author Mou, Zhiyu
Xu, Miao
Bai, Rongquan
Yang, Zhuoran
Yu, Chuan
Xu, Jian
Zheng, Bo
author_facet Mou, Zhiyu
Xu, Miao
Bai, Rongquan
Yang, Zhuoran
Yu, Chuan
Xu, Jian
Zheng, Bo
contents Auto-bidding has become a cornerstone of modern online advertising platforms, enabling many advertisers to automate bidding at scale and optimize campaign performance. However, prevailing industrial systems rely on single-agent auto-bidding methods that are scalable but overlook the strategic interdependence among advertisers' bids, leading to unstable or suboptimal outcomes. While recent works recognize the game-theoretic nature of auto-bidding, existing approaches remain either computationally intractable at scale or lack a principled equilibrium-selection that aligns with platform-wide objectives. In this paper, we bridge this gap by introducing Nash Equilibrium-Constrained Bidding (NCB), a principled and scalable auto-bidding framework that recasts auto-bidding as a platform-wide optimization problem subject to Nash equilibrium constraints. This approach accounts for fine-grained strategic interdependencies among advertisers, ensuring both agent-level stability and ecosystem-level optimality. Notably, we develop a theoretically sound penalty-based primal-dual gradient method with rigorous convergence guarantees, supported by an efficient algorithm suitable for industrial deployment. Extensive experiments validate the effectiveness of our approach.
format Preprint
id arxiv_https___arxiv_org_abs_2503_10304
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Large-Scale Auto-bidding with Nash Equilibrium Constraints
Mou, Zhiyu
Xu, Miao
Bai, Rongquan
Yang, Zhuoran
Yu, Chuan
Xu, Jian
Zheng, Bo
Machine Learning
Artificial Intelligence
Computer Science and Game Theory
Auto-bidding has become a cornerstone of modern online advertising platforms, enabling many advertisers to automate bidding at scale and optimize campaign performance. However, prevailing industrial systems rely on single-agent auto-bidding methods that are scalable but overlook the strategic interdependence among advertisers' bids, leading to unstable or suboptimal outcomes. While recent works recognize the game-theoretic nature of auto-bidding, existing approaches remain either computationally intractable at scale or lack a principled equilibrium-selection that aligns with platform-wide objectives. In this paper, we bridge this gap by introducing Nash Equilibrium-Constrained Bidding (NCB), a principled and scalable auto-bidding framework that recasts auto-bidding as a platform-wide optimization problem subject to Nash equilibrium constraints. This approach accounts for fine-grained strategic interdependencies among advertisers, ensuring both agent-level stability and ecosystem-level optimality. Notably, we develop a theoretically sound penalty-based primal-dual gradient method with rigorous convergence guarantees, supported by an efficient algorithm suitable for industrial deployment. Extensive experiments validate the effectiveness of our approach.
title Large-Scale Auto-bidding with Nash Equilibrium Constraints
topic Machine Learning
Artificial Intelligence
Computer Science and Game Theory
url https://arxiv.org/abs/2503.10304