A Joint Auction Framework with Externalities and Adaptation

Fuente: arXiv
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Main Authors: Fang, Chun, Liu, Luowen, Huang, Kun, Ruan, Tao, Yan, Sheng, Wang, Zhen, Li, Huan, Liu, Qiang, Wang, Xingxing
Format: Preprint
Published: 2025
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author Fang, Chun
Liu, Luowen
Huang, Kun
Ruan, Tao
Yan, Sheng
Wang, Zhen
Li, Huan
Liu, Qiang
Wang, Xingxing
author_facet Fang, Chun
Liu, Luowen
Huang, Kun
Ruan, Tao
Yan, Sheng
Wang, Zhen
Li, Huan
Liu, Qiang
Wang, Xingxing
contents Recently, joint advertising has gained significant attention as an effective approach to enhancing the efficiency and revenue of advertising slot allocation. Unlike traditional advertising, which allocates advertising slots exclusively to a single advertiser, joint advertising displays advertisements from brands and stores that have established a joint selling relationship within the same advertising slot. However, existing approaches often struggle to accommodate both joint and traditional advertising frameworks, thereby limiting the revenue potential and generalizability of joint advertising. Furthermore, these methods are constrained by two critical limitations: they generally neglect the influence of global externalities, and they fail to address the bidding variability stemming from multi-party advertiser participation. Collectively, these limitations present substantial challenges to the design of joint auction mechanisms. To address these challenges, we propose a Joint Auction Framework incorporating Externalities and Adaptation, and leverage the automated mechanism design (AMD) method through our proposed JEANet to compute joint auction mechanisms that satisfy the conditions of individual rationality (IR) and approximate dominant strategy incentive compatibility (DSIC). As the first AMD method to integrate global externalities into joint auctions, JEANet dynamically adapts to the bidding characteristics of multi-party advertiser and enables unified auctions that integrate both joint and traditional advertising. Extensive experimental results demonstrate that JEANet outperforms state-of-the-art baselines in multi-slot joint auctions.
format Preprint
id arxiv_https___arxiv_org_abs_2512_15043
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A Joint Auction Framework with Externalities and Adaptation
Fang, Chun
Liu, Luowen
Huang, Kun
Ruan, Tao
Yan, Sheng
Wang, Zhen
Li, Huan
Liu, Qiang
Wang, Xingxing
Computer Science and Game Theory
Recently, joint advertising has gained significant attention as an effective approach to enhancing the efficiency and revenue of advertising slot allocation. Unlike traditional advertising, which allocates advertising slots exclusively to a single advertiser, joint advertising displays advertisements from brands and stores that have established a joint selling relationship within the same advertising slot. However, existing approaches often struggle to accommodate both joint and traditional advertising frameworks, thereby limiting the revenue potential and generalizability of joint advertising. Furthermore, these methods are constrained by two critical limitations: they generally neglect the influence of global externalities, and they fail to address the bidding variability stemming from multi-party advertiser participation. Collectively, these limitations present substantial challenges to the design of joint auction mechanisms. To address these challenges, we propose a Joint Auction Framework incorporating Externalities and Adaptation, and leverage the automated mechanism design (AMD) method through our proposed JEANet to compute joint auction mechanisms that satisfy the conditions of individual rationality (IR) and approximate dominant strategy incentive compatibility (DSIC). As the first AMD method to integrate global externalities into joint auctions, JEANet dynamically adapts to the bidding characteristics of multi-party advertiser and enables unified auctions that integrate both joint and traditional advertising. Extensive experimental results demonstrate that JEANet outperforms state-of-the-art baselines in multi-slot joint auctions.
title A Joint Auction Framework with Externalities and Adaptation
topic Computer Science and Game Theory
url https://arxiv.org/abs/2512.15043