Geminis Ad Auction Revealed: "Mechanism Design for Large Language Models"

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[2310.10826] Mechanism Design for Large Language Models

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Computer Science > Computer Science and Game Theory

arXiv:2310.10826 (cs)

[Submitted on 16 Oct 2023 (v1), last revised 2 Jul 2024 (this version, v3)]

Title:Mechanism Design for Large Language Models

Authors:Paul Duetting, Vahab Mirrokni, Renato Paes Leme, Haifeng Xu, Song Zuo<br>View a PDF of the paper titled Mechanism Design for Large Language Models, by Paul Duetting and 4 other authors

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Abstract:We investigate auction mechanisms for AI-generated content, focusing on applications like ad creative generation. In our model, agents' preferences over stochastically generated content are encoded as large language models (LLMs). We propose an auction format that operates on a token-by-token basis, and allows LLM agents to influence content creation through single dimensional bids. We formulate two desirable incentive properties and prove their equivalence to a monotonicity condition on output aggregation. This equivalence enables a second-price rule design, even absent explicit agent valuation functions. Our design is supported by demonstrations on a publicly available LLM.

Comments:<br>WWW'24 Best Paper

Subjects:

Computer Science and Game Theory (cs.GT); Theoretical Economics (econ.TH)

Cite as:<br>arXiv:2310.10826 [cs.GT]

(or<br>arXiv:2310.10826v3 [cs.GT] for this version)

https://doi.org/10.48550/arXiv.2310.10826

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arXiv-issued DOI via DataCite

Submission history<br>From: Song Zuo [view email]<br>[v1]<br>Mon, 16 Oct 2023 21:01:12 UTC (50 KB)

[v2]<br>Fri, 14 Jun 2024 19:59:11 UTC (64 KB)

[v3]<br>Tue, 2 Jul 2024 14:34:11 UTC (38 KB)

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