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OpenAI details how it built a bespoke advertising stack for ChatGPT using a custom post-trained LLM with tool-call architecture for retrieval, ranking, relevance, and auctions, featuring stateful ad sessions and separation from answer generation, having reached $1B annualized revenue with over 100,000 advertisers.
MIT research shows that LLM agents make better decisions in auctions and matching markets when prompts state key rule facts plainly or present choices simply, while reasoning about opponents often hurts performance. Human market-design heuristics transfer well to models like GPT-4o, Claude, Gemini, and Gemma.
This paper studies whether interaction formats (like sequential/ascending auction interfaces) and textual reasoning scaffolds improve how LLM agents make strategic decisions in auctions and matching environments. It finds that simpler interfaces and payoff-contingency prompts reduce bid deviations, but these behavioral gains do not necessarily show up in the agents' stated explanations—suggesting scaffolds should be evaluated by realized choices, not just verbal indicators.
Princeton University announces its Spring 2025 course on Economics and Computation, taught by Matt Weinberg and Mark Braverman, covering topics like game theory, auctions, mechanism design, and cryptocurrencies.
TikTok's 'Surprise Set' auctions deceive users by displaying high-value items like iPhones but frequently awarding cheap prizes; TikTok updated its policy to ban certain expensive items from these auctions.