Search Ads
Higher positions receive larger click-through rates. Quality and bid jointly determine ranking.
Ad auction
Your position—
Expected clicks0
Payment/click0
Your utility0
Platform revenue0
How this teaches game theory
Sponsored-search auctions are multi-slot allocation mechanisms. Advertisers care about position, expected clicks, conversion value, and price. The platform must rank advertisers while creating incentives that balance revenue and efficient allocation.
Complete scenario, mode, level, and pricing guide
Social Media Ads
Engagement quality matters strongly, so a lower bid can outrank a weak high bidder.
Sponsored Products
Marketplace ads compete for product visibility where relevance influences ranking.
Modes
Human Advertiser vs Bots
You choose one bid while competing against fixed bot advertisers.
Human + Bid Advisor
The simulator reports whether another bid would increase your expected utility.
Human Controls Market
Your slider also shifts competing bids, making strategic interactions easier to inspect.
Computer Simulation
All bidders adapt automatically to estimated value and position incentives.
Levels
Level 1 — First-Price Ranking
Winners pay their own bid per click. Bid shading becomes immediately important.
Level 2 — GSP Pricing
Ranking uses bid × quality, while payment is based on the next competitor's rank score.
Level 3 — Strategic Bidding
Bots adjust bids and the human can search for a best response under competitive pressure.
Key idea: the highest bid does not always win the best slot when quality matters. Payment rules change bidding incentives.