Saturday, December 10, 2011

Clarification on Qn VIII

In the first part of the question VIII, please change "per impression" to "per click" (basically, the advertiser won't pay
unless the user actually goes to the advertiser's page by clicking on the ad)

VIII. [3+3] A search engine has bids on advertisements from two advertisers, A and B. 
Assume that A and B want their ads to be shown w.r.t the same query Q.  Suppose further 
that the search engine cannot show more than one advertisement. A is willing to pay 20c 
per XXimpressionXX click   . B is willing to pay 10c per impression.  How should the search engine 
decide as to whose ad it should show? Pay particular attention to whether the  search 
engine has all the information to make a decision, and if it needs more information, how 
it will get it.

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