The generation mechanism of cyclic fluctuation of bid price in keyword advertising

  • Kawamata Yuji
    Graduate School of Systems and Information Engineering, University of Tsukuba
  • Zhang Xiaoquan
    Department of Decision Sciences and Managerial Economics, Chinese University of Hong Kong
  • Akiyama Eizo
    Faculty of Engineering, Information and Systems, University of Tsukuba

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Other Title
  • 検索連動型広告における循環的な入札額変動の発生機構の解明


<p>Keyword advertising is one of the major internet advertisements. In keyword advertising, the positions of advertisements for the keyword are mainly determined by the generalized second price auction. Zhang & Feng (2011) have found that in real keyword advertising market, advertisers' bids can exhibit saw-tooth like fluctuation. Furthermore, modelling mathematically the competition with 2 advertisers, they have explained the generation mechanism of such fluctuation. In this study, using actual market data, we show that various types of cyclic fluctuation other than saw-tooth occur in real. We also show that the generation mechanism of various types of cyclic fluctuation can be explained by a mathematical model assuming the competition with many (3 or more) advertisers.</p>



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