JD-BP: A Joint-Decision Generative Framework for Auto-Bidding and Pricing

Fuente: arXiv
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Main Authors: Meng, Linghui, Gan, Chun, Niu, Shengsheng, Zhang, Chengcheng, Li, Chenchen, Yang, Chuan, Mao, Yi, Zhu, Xin, He, Jie, Lin, Zhangang, Law, Ching
Format: Preprint
Published: 2026
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author Meng, Linghui
Gan, Chun
Niu, Shengsheng
Zhang, Chengcheng
Li, Chenchen
Yang, Chuan
Mao, Yi
Zhu, Xin
He, Jie
Lin, Zhangang
Law, Ching
author_facet Meng, Linghui
Gan, Chun
Niu, Shengsheng
Zhang, Chengcheng
Li, Chenchen
Yang, Chuan
Mao, Yi
Zhu, Xin
He, Jie
Lin, Zhangang
Law, Ching
contents Auto-bidding services optimize real-time bidding strategies for advertisers under key performance indicator (KPI) constraints such as target return on investment and budget. However, uncertainties such as model prediction errors and feedback latency can cause bidding strategies to deviate from ex-post optimality, leading to inefficient allocation. To address this issue, we propose JD-BP, a Joint generative Decision framework for Bidding and Pricing. Unlike prior methods, JD-BP jointly outputs a bid value and a pricing correction term that acts additively with the payment rule such as GSP. To mitigate adverse effects of historical constraint violations, we design a memory-less Return-to-Go that encourages future value maximizing of bidding actions while the cumulated bias is handled by the pricing correction. Moreover, a trajectory augmentation algorithm is proposed to generate joint bidding-pricing trajectories from a (possibly arbitrary) base bidding policy, enabling efficient plug-and-play deployment of our algorithm from existing RL/generative bidding models. Finally, we employ an Energy-Based Direct Preference Optimization method in conjunction with a cross-attention module to enhance the joint learning performance of bidding and pricing correction. Offline experiments on the AuctionNet dataset demonstrate that JD-BP achieves state-of-the-art performance. Online A/B tests at JD.com confirm its practical effectiveness, showing a 4.70% increase in ad revenue and a 6.48% improvement in target cost.
format Preprint
id arxiv_https___arxiv_org_abs_2604_05845
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle JD-BP: A Joint-Decision Generative Framework for Auto-Bidding and Pricing
Meng, Linghui
Gan, Chun
Niu, Shengsheng
Zhang, Chengcheng
Li, Chenchen
Yang, Chuan
Mao, Yi
Zhu, Xin
He, Jie
Lin, Zhangang
Law, Ching
Computer Science and Game Theory
Machine Learning
91B26
I.2.6; H.3.5
Auto-bidding services optimize real-time bidding strategies for advertisers under key performance indicator (KPI) constraints such as target return on investment and budget. However, uncertainties such as model prediction errors and feedback latency can cause bidding strategies to deviate from ex-post optimality, leading to inefficient allocation. To address this issue, we propose JD-BP, a Joint generative Decision framework for Bidding and Pricing. Unlike prior methods, JD-BP jointly outputs a bid value and a pricing correction term that acts additively with the payment rule such as GSP. To mitigate adverse effects of historical constraint violations, we design a memory-less Return-to-Go that encourages future value maximizing of bidding actions while the cumulated bias is handled by the pricing correction. Moreover, a trajectory augmentation algorithm is proposed to generate joint bidding-pricing trajectories from a (possibly arbitrary) base bidding policy, enabling efficient plug-and-play deployment of our algorithm from existing RL/generative bidding models. Finally, we employ an Energy-Based Direct Preference Optimization method in conjunction with a cross-attention module to enhance the joint learning performance of bidding and pricing correction. Offline experiments on the AuctionNet dataset demonstrate that JD-BP achieves state-of-the-art performance. Online A/B tests at JD.com confirm its practical effectiveness, showing a 4.70% increase in ad revenue and a 6.48% improvement in target cost.
title JD-BP: A Joint-Decision Generative Framework for Auto-Bidding and Pricing
topic Computer Science and Game Theory
Machine Learning
91B26
I.2.6; H.3.5
url https://arxiv.org/abs/2604.05845