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Figure 8.3 Illustration of the assignments of queries to advertisers in the optimum and Balance algorithms
Thus, we see in Fig. 8.3(b) that A 2 is assigned B queries. These queries could have been
assigned to either A 1 or A 2 by the optimum algorithm. We also see in Fig. 8.3(b) that we
use y as the number of queries assigned to A 1 and x as B y . It is our goal to show y x .
That inequality will show the revenue of Balance is at least 3 B/ 2, or 3/4th the revenue of
the optimum algorithm.
We note that x is also the number of unassigned queries for the Balance Algorithm, and
that all the unassigned queries must have been assigned to A 2 by the optimum algorithm.
The reason is that A 1 never runs out of budget, so any query assigned by the optimum al-
gorithm to A 1 is surely bid on by A 1 . Since A 1 always has budget during the running of the
Balance Algorithm, that algorithm will surely assign this query, either to A 1 or to A 2 .
There are two cases, depending on whether more of the queries that are assigned to A 1
by the optimum algorithm are assigned to A 1 or A 2 by Balance.
(1) Suppose at least half of these queries are assigned by Balance to A 1 . Then y B/ 2, so
surely y x .
(2) Suppose more than half of these queries are assigned by Balance to A 2 . Consider the
last of these queries q that is assigned to A 2 by the Balance Algorithm. At that time, A 2
must have had at least as great a budget available as A 1 , or else Balance would have
assigned query q to A 1 , just as the optimum algorithm did. Since more than half of the
B queries that the optimum algorithm assigns to A 1 are assigned to A 2 by Balance, we
know that when q was assigned, the remaining budget of A 2 was less than B/ 2. There-
fore, at that time, the remaining budget of A 1 was also less than B/ 2. Since budgets
only decrease, we know that x < B/ 2. It follows that y > x , since x + y = B .
We conclude that y x in either case, so the competitive ratio of the Balance Algorithm is
3/4.
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