R. Preston McAfee

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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)
A robust prediction of auction theory is that reserve prices will be used in auctions. The optimal selling mechanism for the owner of a unique, indivisible item is to sell to the bidder with the highest valuation unless this valuation is below a cut-off level; and this cut-off valuation is strictly above the seller’s own valuation. Thus the monopolist(More)
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)
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)
Display advertisements vary in the extent to which they annoy users. While publishers know the payment they receive to run annoying ads, little is known about the cost such ads incur due to user abandonment. We conducted a two-experiment investigation to analyze ad features that relate to annoyingness and to put a monetary value on the cost of annoying ads.(More)
The Myerson—Satterthwaite Theorem (1983) demonstrates that information must interfere with efficient exchange when a buyer and seller have independently distributed private information and there is a nontrivial exchange problem. I bound the losses associated with private information based on a simple characteristic for of the distributions. When the median(More)
We investigate the design of mechanisms to incentivize high quality outcomes in crowdsourcing environments with strategic agents, when entry is an <i>endogenous</i>, strategic choice. Modeling endogenous entry in crowdsourcing markets is important because there is a nonzero cost to making a contribution of any quality which can be avoided by not(More)
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)