Collusive Bidding for Keyword Bundles With a Dual-Roled Principal

Motivated by the trend of platforms participating directly in their markets, we examine the dualroled platform's “unethical” behaviors in algorithmic keyword auctions. We propose an algorithmic mechanism, the Optimal Resource Allocation under Second-Price Auction, comprising a first-stage second-price auction and a second-stage market game. In the first stage, we analyze the distribution of surplus in the auction of an indivisible keyword bundle when collusive behaviors are permitted. A “nested