Year: 2025
Type: preprint
Abstract: We model a procurement scenario in which two \textit{imperfect} bidders act simultaneously on behalf of a single buyer, a configuration common in display advertising and referred to as \textit{side-by-side bidding} but largely unexplored in theory. We prove that the iterated best response algorithm converges to an equilibrium under standard distributional assumptions and provide sufficient condition for uniqueness. Beyond establishing existence and convergence, our analysis provides a tractable numerical method for quantitative studies of side-by-side procurement.
Source: arXiv (Cornell University)
Author: Heymann, Benjamin
Institution: Criteo (France)
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4417087013
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