Abstract

Advertising is a critical process for promoting both products and ser- vices in global trade. Internet has emerged as a powerful medium for trade and commerce. Online advertising over the internet has increased more than hundred- fold since 2001. In the present work, we address problems faced by online adver- tisement service providers. In this paper, we propose a multi-slot and multi-site combinatorial auction for allocating scarce advertisement slots available on multi- ple sites. We observe that combinatorial auctions serve as effective mechanisms for allocating advertising slots over the internet. We resort to ant systems (ant - social insect/intelligent agent) to solve the above NP-hard combinatorial optimization problem which involves winner-determination in multi-item and multi-unit com- binatorial auctions.

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