logoalt Hacker News

mlmonkey • yesterday at 5:41 PM • 1 reply • view on HN

There's a reason why GSP (Generalized Second Price) auctions are called "truthful auctions", and that's because they elicit the true value as the bid from the advertiser (in theory).

So (in theory) advertisers will lower their bids if they're not getting the desired value from the clicks; and over time some will migrate budgets to other channels (like "influencers"? shudder ...).


Replies

kevinwang • yesterday at 5:56 PM

(Doesn’t change the point of your comment, but doesn’t Google use first-price auctions now?)

➕ show 1 reply