AdWords and Generalized On-line Matching I: The Tradeoff Algorithm with ψ_k(i) = Σ_{j≥i} y*_j Is (1 − 1/e)-Competitive as k → ∞ When Bids Are SmallResearch Paper
Search engines sell advertising space query by query. Each advertiser states a bid for each keyword and a daily budget; queries arrive one at a time, and each must be assigned to an advertiser immediately, without knowledge of the queries still to come. The revenue-maximizing assignment of the day can only be computed offline. The adwords problem asks how…