Ex Ante Information and the Design of Keyword Auctions

@article{Liu2010ExAI,
  title={Ex Ante Information and the Design of Keyword Auctions},
  author={De Liu and Jianqing Chen and Andrew B. Whinston},
  journal={Information Systems Research},
  year={2010},
  volume={21},
  pages={133-153}
}
K advertising, including sponsored links and contextual advertising, powers many of today’s online information services such as search engines and Internet-based emails. This paper examines the design of keyword auctions, a novel mechanism that keyword advertising providers such as Google and Yahoo! use to allocate advertising slots. In our keyword auction model, advertisers bid their willingness-to-pay per click on their advertisements, and the advertising provider can weight advertisers’ bids… CONTINUE READING
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