Re:Launch HN: Promoted (YC W21) - Search and feed ranking fo...
by andrewyates2020 on Tuesday November 02, 2021 @12:14PM
(#29083358)
In FPA, you need to strategically lower your bid to get "margin." In GSP, that's also true. I have some details here:
https://medium.com/promoted/when-goog-fb-is-bad-for-your-per...
In a GSP, I bid $1. I'll pay the second price (not really but for purposes of clarity assume it) which was $0.90.
In this case, I always (almost) pay less than my maximum bid, which allows for margin given to me (assuming true value and a bunch of other unrealistic things) rather than in the FPA, where I pay $1, assuming my bid is highest.
I'm not talking in incentive-compatibility terms, rather in terms of where the "margin" goes.