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Bid flooding to manipulate prices

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What is the danger of going back to first price auction? Second price auction helped to limit the exposure to this kind of risk.

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Bid flooding to manipulate prices

  1. 1. July 2018 / Page 1marketing.scienceconsulting group, inc. linkedin.com/in/augustinefou Bid flooding – to raise prices Multiple fake bids simultaneously, to drive up bids, floor prices Diagram of normal real-time biddingAutomated “bid flooding” to manipulate bids and floor prices $3.14 $2.93 $1.75 $2.10 $2.67 Net effect is to cause legit buyers’ algos to increase bids to win impressions, especially dangerous if bid “caps” are not set $0.94 $1.42

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