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On Designing the Optimal Integrated Ad Auction in E-commerce Platforms

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AAAI 2025

•

March 01, 2025

•

Philadelphia, United States

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recommender systems

Currently, e-commerce platforms integrate ads and organic content into a mixed list for users. While platforms seek to maximize profit from advertisers, organic items enhance user experience. To ensure long-term development, platforms aim to design mechanisms that optimize both revenue and user satisfaction. Traditional methods rank ads and organic items separately before integrating them. Even if each part is locally optimal, the combined result may not be globally optimal. Recent research has proposed inserting candidate ads into the organic list one by one. However, this approach, which constructs the final mixed result based on a sequential list, remains suboptimal. In this paper, we come up with the $\textbf{J}$oint $\textbf{INTE}$grated $\textbf{R}$egret $\textbf{Net}$work (JINTER Net). Unlike traditional methods, which pre-order ads and organic items separately, JINTER Net directly selects from the combined set of candidate ads and organic items to generate an optimal list. This approach aims to maximize both platform revenue and user experience while satisfying approximate dominant strategy incentive compatibility and individual rationality constraints. We validate the effectiveness of JINTER Net using both synthetic data and real dataset, and our experimental results show that it significantly outperforms baseline models across multiple metrics.

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