Pricing in position auctions and online advertising

B-Tier
Journal: Economic Theory
Year: 2014
Volume: 55
Issue: 1
Pages: 243-256

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Can search engines increase revenues by changing their position auctions? In this paper, I analyze position auctions with general pricing rules to answer this question. In these auctions, there are several items that are commonly ranked by bidders with unit demand. I show that revenues remain the same for position auctions with regular pricing rules where the price for an item depends on the bids of agents who win lower-ranked items. In addition, all of the bidders have the same ex post payoffs. I also show that regularity is a necessary condition to get ex post payoff equivalence. Copyright Springer-Verlag Berlin Heidelberg 2014

Technical Details

RePEc Handle
repec:spr:joecth:v:55:y:2014:i:1:p:243-256
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29