Social Surplus Maximization in Sponsored Search Auctions Requires Communication

05/12/2023

∙

by   Suat Evren, et al.

∙

0

∙

share

We show that computing the optimal social surplus requires Ω(mn) bits of communication between the website and the bidders in a sponsored search auction with n slots on the website and with tick size of 2^-m in the discrete model, even when bidders are allowed to freely communicate with each other.