Pricing Algorithms For a Two-sided Internet Advertisement Market

The Google AdSense Program is a successful internet advertisement program where Google places contextual adverts on third-party websites and shares the resulting revenue with each publisher. Advertisers have budgets and bid on ad slots while publishers set reserve prices for the ad slots on their websites. Following previous modelling efforts, we model the program as a two-sided market with advertisers on one side and publishers on the other. We show a reduction from the Generalised Assignment Problem (GAP) to the problem of computing the revenue maximising allocation and pricing of publisher slots under a first-price auction. GAP is APX-hard but a (1-1/e) approximation is known. We compute truthful and revenue-maximizing prices and allocation of ad slots to advertisers under a second-price auction. The auctioneer's revenue is within (1-1/e) second-price optimal.

On the Marginal Utility of Deploying Measurement Infrastructure

The cost and complexity of deploying measurement infrastructure in the Internet for the purpose of analyzing its structure and behavior is considerable. Basic questions about the utility of increasing the number of measurements and/or measurement sites have not yet been addressed which has lead to a "more is better" approach to wide-area measurements. In this paper, we quantify the marginal utility of performing wide-area measurements in the context of Internet topology discovery. We characterize topology in terms of nodes, links, node degree distribution, and end-to-end flows using statistical and information-theoretic techniques. We classify nodes discovered on the routes between a set of 8 sources and 1277 destinations to differentiate nodes which make up the so called "backbone" from those which border the backbone and those on links between the border nodes and destination nodes. This process includes reducing nodes that advertise multiple interfaces to single IP addresses. We show that the utility of adding sources goes down significantly after 2 from the perspective of interface, node, link and node degree discovery. We show that the utility of adding destinations is constant for interfaces, nodes, links and node degree indicating that it is more important to add destinations than sources. Finally, we analyze paths through the backbone and show that shared link distributions approximate a power law indicating that a small number of backbone links in our study are very heavily utilized.