Abstract: A method for handling priorities in an ad exchange auction includes: constructing an exchange graph including nodes representing publishers and advertisers and directed edges that represent bilateral business agreements connecting the nodes; receiving an opportunity for displaying an ad to a user from a publisher; receiving ads from which to choose to fill the opportunity, the ads including respective advertiser priorities (A) and bid amounts; receiving a publisher priority (P) the ads as assigned by the publisher; constructing a priority triple (P,A,M) for each of at least some of the plurality of ads, the triple including the publisher priority (P), the advertiser priority (A), and a money payable to the publisher (M); comparing the P, the A, and the M of respective priority triples for the ads according to at least one scoping rule and at least one precedence rule, to determine the ad with which to fill the opportunity; and delivering the ad determined to have the highest priority to a web page of the publ