Model Monotonicity in Autobidding Auctions: When Do Better Predictions Lead to Better Outcomes?
Ashwinkumar Badanidiyuru
摘要
Online advertising platforms rely on machine learning models to predict click-through rates (pCTR) and conversion rates (pCVR) for auction mechanisms. We introduce a novel framework to study the interaction between recommender system model quality, auction format, and autobidder behavior. We formalize when model improvements---defined via a refinement relation inspired by filtrations in probability theory---lead to improvements in platform-level Evaluation Criteria Metrics (ECM) such as revenue, welfare, or liquid welfare. Our main contributions are: (1) a formal definition of model improvement based on cluster refinement, and (2) a systematic characterization of ECM monotonicity across different combinations of bidder types (tCPA, max-CPA), auction formats (first-price, second-price, VCG), and budget constraints. We show that first-price auctions with uniform bidding guarantee revenue monotonicity for tCPA bidders without budgets (via Jensen's inequality), while second-price auctions and budget constraints can break this property. We provide full numerical constructions for the non-monotonicity results. Our findings have practical implications for advertising platforms seeking to align model improvements with business outcomes.
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- Auction Design in an Auto-bidding Setting: Randomization Improves Efficiency Beyond VCGAranyak MehtaWWW 2022 · 被引用 41 次
- Multi-channel Autobidding with Budget and ROI ConstraintsYuan Deng, Negin Golrezaei, Patrick Jaillet, Jason Cheuk Nam Liang 等ICML 2023 · 被引用 34 次
- Efficiency of Non-Truthful Auctions in Auto-bidding: The Power of RandomizationChristopher Liaw, Aranyak Mehta, Andrés PerlrothWWW 2023 · 被引用 14 次
- Efficiency of Non-Truthful Auctions in Auto-bidding with Budget ConstraintsChristopher Liaw, Aranyak Mehta, Wennan ZhuWWW 2024 · 被引用 10 次
- Optimal Type-Dependent Liquid Welfare Guarantees for Autobidding Agents with BudgetsRiccardo Colini-Baldeschi, Sophie Klumper, Twan Kroll, Stefano Leonardi 等SODA 2026 · 被引用 7 次
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