One goal of every business is to save money by minimizing cost and maximizing profit. Cidewalk is a mobile advertisement company that wishes to accomplish this goal through implementing an optimal bidding strategy. By collecting and analyzing market data, it was possible to identify the distribution that best represents the second best bids, which is the price Cidewalk pays for an advertisement space by bidding in a Vickrey auction. Implementing a simulation for the optimal bidding model that utilizes Bayesian updating methods ensures that the model responds to any changes in the distribution parameters. The model’s performance was evaluated by simulation and throughout one day the implemented model yielded 17% savings when compared to Cidewalk’s current bidding model.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Antul, Laura Elizabeth

Contributors

• Parkhomenko, Anastasiia

Publisher

• Worcester Polytechnic Institute

Identifier

• E-project-032516-112249

Award

• Provost's MQP Award

Advisor

• Sturm, Stephan
• Blais, Marcel Y.

Year

• 2016

Sponsor

• Chitika, Inc.
• Cidewalk

Date created

• 2016-03-25

Resource type

• Major Qualifying Project

Major

• Mathematical Sciences

Rights statement

• In Copyright

Last modified

• 2023-01-20