A Nash Bargaining Approach to Retention Enhancing Bid Optimization in Sponsored Search Auctions with Discrete Bids

Bid optimization is now becoming quite popular in sponsored search auctions on the Web. Given a keyword and the maximum willingness to pay of each advertiser interested in the keyword, the bid optimizer generates a profile of bids for the advertisers with the objective of maximizing customer retention without compromising the revenue of the search engine. In this paper, we present a bid optimization algorithm that is based on a Nash bargaining model where the first player is the search engine and the second player is a virtual agent representing all the bidders. We make the realistic assumption that each bidder specifies a maximum willingness to pay values and a discrete, finite set of bid values. We show that the Nash bargaining solution for this problem always lies on a certain edge of the convex hull such that one end point of the edge is the vector of maximum willingness to pay of all the bidders. We show that the other endpoint of this edge can be computed as a solution of a linear programming problem. We also show how the solution can be transformed to a bid profile of the advertisers.

Performance analysis of a fluid queue with random service rate in discrete time

We consider a fluid queue in discrete time with random service rate. Such a queue has been used in several recent studies on wireless networks where the packets can be arbitrarily fragmented. We provide conditions on finiteness of moments of stationary delay, its Laplace-Stieltjes transform and various approximations under heavy traffic. Results are extended to the case where the wireless link can transmit in only a few slots during a frame.

Stochastic Algorithms for Discrete Parameter Simulation Optimization

We present two efficient discrete parameter simulation optimization (DPSO) algorithms for the long-run average cost objective. One of these algorithms uses the smoothed functional approximation (SFA) procedure, while the other is based on simultaneous perturbation stochastic approximation (SPSA). The use of SFA for DPSO had not been proposed previously in the literature. Further, both algorithms adopt an interesting technique of random projections that we present here for the first time. We give a proof of convergence of our algorithms. Next, we present detailed numerical experiments on a problem of admission control with dependent service times. We consider two different settings involving parameter sets that have moderate and large sizes, respectively. On the first setting, we also show performance comparisons with the well-studied optimal computing budget allocation (OCBA) algorithm and also the equal allocation algorithm. Note to Practitioners-Even though SPSA and SFA have been devised in the literature for continuous optimization problems, our results indicate that they can be powerful techniques even when they are adapted to discrete optimization settings. OCBA is widely recognized as one of the most powerful methods for discrete optimization when the parameter sets are of small or moderate size. On a setting involving a parameter set of size 100, we observe that when the computing budget is small, both SPSA and OCBA show similar performance and are better in comparison to SFA, however, as the computing budget is increased, SPSA and SFA show better performance than OCBA. Both our algorithms also show good performance when the parameter set has a size of 10(8). SFA is seen to show the best overall performance. Unlike most other DPSO algorithms in the literature, an advantage with our algorithms is that they are easily implementable regardless of the size of the parameter sets and show good performance in both scenarios.

Discrete control algorithms for a tubular ammonia reactor

The specific objective of this paper is to develop direct digital control strategies for an ammonia reactor using quadratic regulator theory and compare the performance of the resultant control system with that under conventional PID regulators. The controller design studies are based on a ninth order state-space model obtained from the exact nonlinear distributed model using linearization and lumping approximations. The evaluation of these controllers with reference to their disturbance rejection capabilities and transient response characteristics, is carried out using hybrid computer simulation.

Power and Discrete Rate Adaptation for Energy Harvesting Wireless Nodes

Energy Harvesting (EH) nodes, which harvest energy from the environment in order to communicate over a wireless link, promise perpetual operation of a wireless network with battery-powered nodes. In this paper, we address the throughput optimization problem for a rate-adaptive EH node that chooses its rate from a set of discrete rates and adjusts its power depending on its channel gain and battery state. First, we show that the optimal throughput of an EH node is upper bounded by the throughput achievable by a node that is subject only to an average power constraint. We then propose a simple transmission scheme for an EH node that achieves an average throughput close to the upper bound. The scheme's parameters can be made to account for energy overheads such as battery non-idealities and the energy required for sensing and processing. The effect of these overheads on the average throughput is also analytically characterized.

Class of linear time-varying discrete systems

A class of linear time-varying discrete systems is considered, and closed-form solutions are obtained in different cases. Some comments on stability are also included.

Discrete Wiener¿Lee transforms

The use of Wiener–Lee transforms to construct one of the frequency characteristics, magnitude or phase of a network function, when the other characteristic is given graphically, is indicated. This application is useful in finding a realisable network function whose magnitude or phase curve is given. A discrete version of the transform is presented, so that a digital computer can be employed for the computation.

Exact entanglement studies of strongly correlated systems: role of long-range interactions and symmetries of the system

We study the bipartite entanglement of strongly correlated systems using exact diagonalization techniques. In particular, we examine how the entanglement changes in the presence of long-range interactions by studying the Pariser-Parr-Pople model with long-range interactions. We compare the results for this model with those obtained for the Hubbard and Heisenberg models with short-range interactions. This study helps us to understand why the density matrix renormalization group (DMRG) technique is so successful even in the presence of long-range interactions. To better understand the behavior of long-range interactions and why the DMRG works well with it, we study the entanglement spectrum of the ground state and a few excited states of finite chains. We also investigate if the symmetry properties of a state vector have any significance in relation to its entanglement. Finally, we make an interesting observation on the entanglement profiles of different states (across the energy spectrum) in comparison with the corresponding profile of the density of states. We use isotropic chains and a molecule with non-Abelian symmetry for these numerical investigations.

New Insights into Optimal Discrete Rate Adaptation for Average Power Constrained Single and Multi-Node Systems

The throughput-optimal discrete-rate adaptation policy, when nodes are subject to constraints on the average power and bit error rate, is governed by a power control parameter, for which a closed-form characterization has remained an open problem. The parameter is essential in determining the rate adaptation thresholds and the transmit rate and power at any time, and ensuring adherence to the power constraint. We derive novel insightful bounds and approximations that characterize the power control parameter and the throughput in closed-form. The results are comprehensive as they apply to the general class of Nakagami-m (m >= 1) fading channels, which includes Rayleigh fading, uncoded and coded modulation, and single and multi-node systems with selection. The results are appealing as they are provably tight in the asymptotic large average power regime, and are designed and verified to be accurate even for smaller average powers.

Elasto-plastic analysis of jointed rocks using discrete continuum and equivalent continuum approaches

Results from elasto-plastic numerical simulations of jointed rocks using both the equivalent continuum and discrete continuum approaches are presented, and are compared with experimental measurements. Initially triaxial compression tests on different types of rocks with wide variation in the uniaxial compressive strength are simulated using both the approaches and the results are compared. The applicability and relative merits and limitations of both the approaches for the simulation of jointed rocks are discussed. It is observed that both the approaches are reasonably good in predicting the real response. However, the equivalent continuum approach has predicted somewhat higher stiffness values at low strains. Considering the modelling effort involved in case of discrete continuum approach, for problems with complex geometry, it is suggested that a proper equivalent continuum model can be used, without compromising much on the accuracy of the results. Then the numerical analysis of a tunnel in Japan is taken up using the continuum approach. The deformations predicted are compared well against the field measurements and the predictions from discontinuum analysis. (C) 2012 Elsevier Ltd. All rights reserved.