Auction-Pricing Many Substitute Products

摘要

A method of providing advertising services selects a finite set of topics, and arranges the selected set of topics into a hierarchical structure. The method classifies impression items into the nodes within the hierarchical structure, and allows bidding against the nodes within the hierarchical structure. Some embodiments allow a bidder to request a refinement of the hierarchical structure. These embodiments receive such a request, and compare the request to a set of criteria. If the request meets the set of criteria, then based on the request, the method divides a first node in the hierarchical structure to at least a second and third node. The method allows bidders to bid on each of the first, second, and third nodes. Preferably, the method receives several bids for one or more of the nodes within the hierarchical structure, and calculates an equilibrium price for each node. The bids are for purchasing the right to present content in relation to a node. The method optionally measures a performance for the nodes within the hierarchical structure. Based on the measure of performance for the nodes, the method preferably removes an under-performing node from the hierarchical structure. Generation and/or maintenance of an under-performing node may lower the price of one or more nodes in the hierarchical structure. Additional embodiments include a system and/or a computer readable medium for performing the foregoing.