Polyhedral Clinching Auctions and the AdWords Polytope Renato Paes Leme (Cornell University) Joint work with Gagan Goel and Vahab Mirrokni (Google NYC) Creating an Ads campaign … Creating an Ads campaign … Creating an Ads campaign … How to deal with budgets in practice ? VCG, GSP, … How to deal with budgets in practice ? nice and well studied auction with good VCG, GSP, … game-theoretic properties but without budgets… How to deal with budgets in practice ? budget layer VCG, GSP, … How to deal with budgets in practice ? engineering fix to adapt the original auction to budget layer the budgeted setting. Original game theoretic VCG, GSP, … analysis is now lost. How to deal with budgets in practice ? budget layer VCG, GSP, … How to deal with budgets in practice ? Goal: Design an auction for AdWords Polyhedral control loop that supports budgets natively, Clinching i.e., budgets are built in the VCG, GSP, … Auction game theoretic analysis