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Re:Google Made Billions with Secret Change to Ad-Auction Alg... by theptip on Monday October 09, 2023 @12:01PM (#37821776)
No, precisely as they said: winner pays the second place bid.

E2a: https://en.m.wikipedia.org/wiki/Generalized_second-price_auc...

Re:Google Made Billions with Secret Change to Ad-Auction Alg... by Retric on Monday October 09, 2023 @02:03PM (#37823269)
They disclose its second place + 0.01, but the article says they lied and raised it by 15%.

“Google’s advertising auctions require the winner to pay only a penny more than the runner-up. In 2016, the company discovered that the runner-up had often bid only 80% of the winner’s offer. To help eliminate that 20% between the runner-up and what the winner was willing to pay, Google gave the second-place bidder a built-in handicap to make their offer more competitive, Whinston said, citing internal emails and sealed testimony by Google finance executive Jerry Dischler earlier in the case.”

Re:Google Made Billions with Secret Change to Ad-Auction Alg... by bzbz on Tuesday October 10, 2023 @03:39PM (#37836490)
“Google gave the second-place bidder a built-in handicap to make their offer more competitive” is the tamest way of phrasing it, given that the “handicap”’s only effect is to cost the first-place bidder more money. It never helps the second-place bidder.
Re:Google Made Billions with Secret Change to Ad-Auction Alg... by bzbz on Tuesday October 10, 2023 @03:49PM (#37836600)
“Google gave the second-place bidder a built-in handicap to make their offer more competitive” is the tamest way of phrasing it, given that the “handicap”’s only effect is to cost the first-place bidder more money.

It never helps the second-place bidder. I’d argue “handicap” is deceitful.