Merging Mechanisms for Ads and Organic Items in E-commerce Platforms

In contemporary e-commerce platforms, search result pages display two types of items: ad items and organic items. Ad items are determined through an advertising auction system, while organic items are selected by a recommendation system. These systems have distinct optimization objectives, creating the challenge of effectively merging these two components. Recent research has explored merging mechanisms for e-commerce platforms, but none have simultaneously achieved all desirable properties: incentive compatibility, individual rationality, adaptability to multiple slots, integration of inseparable candidates, and avoidance of repeated exposure for ads and organic items. This paper addresses the design of a merging mechanism that satisfies all these properties. We first provide the necessary conditions for the optimal merging mechanisms. Next, we introduce two simple and effective mechanisms, termed the generalized fix mechanism and the generalized change mechanism. Finally, we theoretically prove that both mechanisms offer guaranteed approximation ratios compared to the optimal mechanism in both simplest and general settings.

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Publication Details

Journal
Proceedings of the AAAI Conference on Artificial Intelligence
Published
2025-04-11
DOI
https://doi.org/10.1609/aaai.v39i13.33479
Primary Topic
Digital Platforms and Economics
Type
article
Field-Weighted Citation Impact
0.00

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article

Merging Mechanisms for Ads and Organic Items in E-commerce Platforms

Weian Li, Nan An, Qi Qi, Liang Zhang
Proceedings of the AAAI Conference on Artificial Intelligence
Digital Platforms and Economics
article

Merging Mechanisms for Ads and Organic Items in E-commerce Platforms

Weian Li, Nan An, Qi Qi, Liang Zhang
article en

Abstract

In contemporary e-commerce platforms, search result pages display two types of items: ad items and organic items. Ad items are determined through an advertising auction system, while organic items are selected by a recommendation system. These systems have distinct optimization objectives, creating the challenge of effectively merging these two components. Recent research has explored merging mechanisms for e-commerce platforms, but none have simultaneously achieved all desirable properties: incentive compatibility, individual rationality, adaptability to multiple slots, integration of inseparable candidates, and avoidance of repeated exposure for ads and organic items. This paper addresses the design of a merging mechanism that satisfies all these properties. We first provide the necessary conditions for the optimal merging mechanisms. Next, we introduce two simple and effective mechanisms, termed the generalized fix mechanism and the generalized change mechanism. Finally, we theoretically prove that both mechanisms offer guaranteed approximation ratios compared to the optimal mechanism in both simplest and general settings.

Proceedings of the AAAI Conference on Artificial IntelligenceVol. 39(13)
Shandong University (CN), Renmin University of China (CN)
Shandong University, National Natural Science Foundation of China, Renmin University of China, Fundamental Research Funds for the Central Universities
Openalex Percentile: Top 87%
Digital Platforms and Economics
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Merging Mechanisms for Ads and Organic Items in E-commerce Platforms — Weian Li, Nan An, et al. · Proceedings of the AAAI Conference on Artificial Intelligence (2025) | TGRS Research Map | TGRS