Problem 2.1Three advertisers (1,2,3) bid for two ad spaces (A, B). The average revenues per click are $6,$4, $3 for the bidders, respectively, and the clickthrough rate of the ad spaces are 500, 300 clicksper hour respectively.(a) Draw the bipartite graph with nodes indicating advertisers/ad spaces and edges indicatingvalues per hour. Indicate the maximum matching with bold lines.(b) Assume a GSP auction with truthful bidding, what is the result of the auction in terms ofthe allocation, the prices charged, and the payoffs received?Solution:
Get answer to your question and much more