In auctions where a seller can post a reserve price but if the object fails to sell cannot commit never to attempt to resell it, revenue equivalence between repeated first price and second price auctions without commitment results. When the time between auctions goes to zero, seller expected revenues converge to those of a static auction with no reserve… (More)
We consider an auction which bidders can enter upon paying an entry cost. Unlike the case of a fixed number of bidders, the seller should not impose a reserve price higher than his own valuation. When a first-price sealed-bid auction is used, the optimal number of bidders enter.
Display advertising has traditionally been sold via guaranteed contracts – a guaranteed contract is a deal between a publisher and an advertiser to allocate a certain number of impressions over a certain period, for a pre-specified price per impression. However, as spot markets for display ads, such as the RightMedia Exchange, have grown in prominence, the… (More)
A large fraction of user-generated content on the Web, such as posts or comments on popular online forums, consists of abuse or spam. Due to the volume of contributions on popular sites, a few trusted moderators cannot identify all such abusive content, so viewer ratings of contributions must be used for moderation. But not all viewers who rate content are… (More)
We model the economics of incentivizing high-quality user generated content (UGC), motivated by settings such as online review forums, question-answer sites, and comments on news articles and blogs. We provide a game-theoretic model within which to study the problem of incentivizing high quality UGC, in which contributors are strategic and motivated by… (More)
Dynamic price discrimination adjusts prices based on the option value of future sales, which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination, and confronts the theories with new data from airline pricing behavior.
A model with two types of consumers, shoppers and captives, is constructed that leads to an equilibrium price dispersion. Shoppers may hold inventories of the good; the level of consumer inventories leads to state-dependent price dispersions. It is shown that prices and quantities display negative serial correlation. The model is tested using grocery store… (More)
There are around 400 advertising networks that match opportunities for " display " advertising, which include banner ads, video ads and indeed all ads other than text-based ads, on web pages and candidate advertisements. This is about a $25 billion business annually. The present study derives a method of pricing such advertisements based on their relative… (More)
The standard business model in the sponsored search marketplace is to sell click-throughs to the advertisers. This involves running an auction that allocates advertisement opportunities based on the value the advertiser is willing to pay per click, times the click-through rate of the advertiser. The click-through rate of an advertiser is the probability… (More)