An adaptive pricing scheme in sponsored search auction: A hierarchical fuzzy classification approach

Abstract

Sponsored Search Auctions (SSA) are gaining widespread attention in web commerce community because of their highly targeted customers and billion dollars revenue generating online market. Unlike other form of auctions this class possesses fairly complex interaction among its key players, Users, Advertisers and Search Engines. Therefore research issues pertaining to SSA are being explored with large momentum in eclectic domains e.g. game theory, algorithmic theory and machine learning etc. Though problems related to different pricing schemes in SSA need more focus from researchers especially in analyzing adaptive pricing measures .This work is an effort towards making diligent use of information available in terms of different auctions' situations by ingraining best of major popular pricing schemes in which switching among pricing is made by hierarchical fuzzy classification. Effectiveness of the proposed scheme is illustrated through experimental results. © 2011 Springer-Verlag.