In sponsored search, a number of advertising slots is available on a search results page, and have to be allocated among a set of advertisers competing to display an ad on the page. This gives rise to a bipartite matching market that is typically cleared by the way of an automated auction. Several auction mechanisms have been proposed, with variants of the Generalized Second Price (GSP) being widely used in practice. A rich body of work on bipartite matching markets builds upon the stable marriage model of Gale and Shapley and the assignment model of Shapley and Shubik. We apply insights from this line of research into the structure of stable outcomes and their incentive properties to advertising auctions. We model advertising auctions in terms of an assignment model with linear utilities, extended with bidder and item specific maximum and minimum prices. Auction mechanisms like the commonly used GSP or the well-known Vickrey-Clarke-Groves (VCG) are interpreted as simply computing a in this model, for a suitably defined set of bidder preferences. In our model, the existence of a stable matching is guaranteed, and under a non-degeneracy assumption a bidder-optimal stable matching exists as well. We give an algorithm to find such matching in polynomial time, and use it to design truthful mechanism that generalizes GSP, is truthful for profit-maximizing bidders, implements features like bidder-specific minimum prices and position-specific bids, and works for rich mixtures of bidders and preferences.
In the marriage model, a set @math of men and a set @math of women is given, where each man and woman is endowed with a ranked list of members of the opposite sex. Men and women are to be matched in a one to one fasion. A matching is considered stable if there is no man and a woman who would simultaneously prefer each other to their respective assigned partners. A stable matching is guaranteed to exist, and the algorithm can be used to find it. The stable matching found by this algorithm is , in that every man prefers it to any other stable matching. Moreover when using the deferred acceptance algorithm, no man has an incentive to misreport his true preference order @cite_14 .
@cite_14
1480100487 2068574579 2091277030 2162429744
The original stable marriage problem requires all men and women to submit a complete and strictly ordered preference list. This is obviously often unrealistic in practice, and several relaxations have been proposed, including the following two common ones: one is to allow an incomplete list, i.e., a man is permitted to accept only a subset of the women and vice versa. The other is to allow a preference list including ties. Fortunately, it is known that both relaxed problems can still be solved in polynomial time. In this paper, we show that the situation changes substantially if we allow both relaxations (incomplete lists and ties) at the same time: the problem not only becomes NP-hard, but also the optimal cost version has no approximation algorithm achieving the approximation ratio of N1-Ɛ, where N is the instance size, unless P=NP. The stable marriage problem is that of matching n men and n women, each of whom has ranked the members of the opposite sex in order of preference, so that no unmatched couple both prefer each other to their partners under the matching. At least one stable matching exists for every stable marriage instance, and efficient algorithms for finding such a matching are well known. The stable roommates problem involves a single set of even cardinality n, each member of which ranks all the others in order of preference. A stable matching is now a partition of this single set into n2 pairs so that no two unmatched members both prefer each other to their partners under the matching. In this case, there are problem instances for which no stable matching exists. However, the present paper describes an O(n2) algorithm that will determine, for any instance of the problem, whether a stable matching exists, and if so, will find such a matching. We study the behavior of random walks along the edges of the stable marriage lattice for various restricted families of allowable preference sets. In the "k-attribute model," each man is valued in each of k attributes, and each woman's ranking of the men is determined by a linear function, representing her relative ranking of those attributes; men's rankings of the women are determined similarly. We show that sampling with a random walk on the marriage lattice can take exponential time, even when k = 2. Moreover, we show that the marriage lattices arising in the k-attribute model are more restrictive than in the general setting; previously such a restriction had only been shown for the sets of preference lists. The second model we consider is the "k-range model," where each person lies in a position in [i, i + k - 1], for some i, on every preference list of the opposite sex. When k = 1 there is a unique stable marriage. When k = 2 there already can be an exponential number of stable marriages, but we show that a random walk on the stable marriage lattice always converges quickly to equilibrium. However, when k ≥ 5, there are preference sets such that the random walk on the lattice will require exponential time to converge. Lastly, we show that in the extreme case where each gender's rankings of the other are restricted to one of just a constant k possible preference lists, there are still instances for which the Markov chain mixes exponentially slowly, even when k = 4. This oversimplification of the general model helps elucidate why Markov chains based on spouse-swapping are not good approaches to sampling, even in specialized scenarios. The stable marriage problem is a well-known problem of matching men to women so that no man and woman who are not married to each other both prefer each other. Such a problem has a wide variety of practical applications ranging from matching resident doctors to hospitals to matching students to schools. A well-known algorithm to solve this problem is the Gale-Shapley algorithm, which runs in polynomial time. It has been proven that stable marriage procedures can always be manipulated. Whilst the Gale-Shapley algorithm is computationally easy to manipulate, we prove that there exist stable marriage procedures which are NP-hard to manipulate. We also consider the relationship between voting theory and stable marriage procedures, showing that voting rules which are NP-hard to manipulate can be used to define stable marriage procedures which are themselves NP-hard to manipulate. Finally, we consider the issue that stable marriage procedures like Gale-Shapley favour one gender over the other, and we show how to use voting rules to make any stable marriage procedure gender neutral.