Dynamic mechanism for selling online advertising space

A system for allocating a resource to a bidder, the system comprising at least one processor configured to:

• receive a declared valuation from the bidder;
• compute an initial payment amount to be requested from the bidder, wherein the initial payment amount is independent of any allocation and is based at least in part on the declared valuation, such that increasing the declared valuation increases the computed initial payment amount;
• compute an index for the bidder based at least in part on the declared valuation;
• and
• allocate the resource to the bidder based at least in part on the index.

At least one non-transitory computer-readable storage medium encoded with a plurality of computer-executable instructions that, when executed, perform a method for allocating an advertising space, the method comprising:

• a) receiving an initial value report from an advertiser;
• b) computing at least one weight for the advertiser based at least in part on the initial value report;
• c) receiving an action rate report from the advertiser;
• d) computing an index for the advertiser based at least in part on the at least one weight and information received in act c);
• e) allocating the advertising space based at least in part on the index;
• and
• f) repeating acts c) through e) for subsequent allocations, using the at least one weight computed in act b).