def. Sponsored Search Auction. This is a different game layout. Imagine a search engine selling advertisement slots.

  • There are ad slots, with click-thru rate, largest to smallest:
  • There are bidders, for whom the value-per-click is . Each bids to get any slot.
  • Then, if bidder is assigned slot and charged
    • Allocation matrix is and
    • price matrix is and is the price charged

def. Generalized Second Price Auction.